Understanding Your CP290 Notice

What this notice is about

We accepted your election to become an Electing Small Business Trust (ESBT).

What you need to do

• Timely file Form 1041, U.S. Income Tax Return for Estates and Trusts PDF
• Include Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc. PDF showing your ownership in the S corporation.
• File a paper return with all required schedules.
• Keep this notice for your records.

For more information:

• S Corporations
• About Form 1120-S, U.S. Income Tax Return for an S Corporation
• S Corporation Compensation and Medical Insurance Issues
• S Corporation Employees, Shareholders and Corporate Officers
• S Corporation Stock and Debt Basis
• Special Rules for Health Insurance Costs of 2-Percent Shareholder-Employees — IRB 2008-2, Notice 2008-1
• Publication 542, Corporations
• Publication 17, Your Federal Income Tax

Frequently asked questions

How do I end the ESBT election?

Only the Commissioner of Internal Revenue can stop this election. See IR Bulletin 2012-1 for instructions