CP261 is the approval notice for Form 2553, Election by a Small Business Corporation.
What you need to do
- Keep this S corporation approval letter (CP261 Notice), in your permanent records.
- Timely file Form 1120S, U.S. Income Tax Return for an S Corporation (PDF), reporting income/loss for the S corporation including Schedules K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. (PDF), for all shareholders.
- Timely file all employment tax returns.
You may want to
- If your address changes, submit Form 8822-B, Change of Address or Responsible Party – Business (PDF), to ensure our records remain correct.
Answers to common questions
Why is the effective date of the election different from what I submitted on Form 2553, Election by a Small Business Corporation (PDF)?
You did not timely file Form 2553 for the effective date requested.
Can I have the effective date changed?
Relief may be available through Revenue Procedure 2013-30 within Late Election Relief.
How do I request a private letter ruling (PLR)?
The instructions for requesting a PLR are in the first Internal Revenue Bulletin of each calendar year. See IRB 2017-1 (PDF)
Links that you may find useful
- S Corporations
- Form 1120S, 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 (PDF)
For more information on S corporations formed as a Limited Liability Company (LLC):
Tax publications you may find useful
- Publication 1, Your Rights as a Taxpayer (PDF)
- Form 8716, Election To Have a Tax Year Other Than a Required Tax Year (PDF)
- Form W-7A Application for Taxpayer Identification Number for Pending U.S. Adoptions (PDF)
- Form W-7 SP Solicitud de Número de Identificación Personal del Contribuyente del Servicio de Impuestos Internos (SP)(PDF)
- Full list of tax forms and instructions
How to get help
- Call the 800, 866 or 888 number listed on the top right corner of your notice.
- Authorize someone (such as an accountant) to contact the IRS on your behalf using Form 2848, Power of Attorney and Declaration of Representative (PDF)
- See if you qualify for help from a Low Income Taxpayer Clinic.