Understanding Your CP290 Notice
This notice tells you we approved your Electing Small Business Trust (ESBT) election.
What you must 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), reflecting your ownership in the S corporation.
- File a paper return with all required schedules.
- Keep this notice in your permanent records.
You may want to visit the following webpages:
- S Corporations
- Form 1120S, U.S. Income Tax Return for an S Corporation(.pdf)
- 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)
Answers to common questions
How do I end the ESBT election?
Only the Commissioner of Internal Revenue can stop this election. See (IR Bulletin 2012-1) (.pdf) for instructions