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IRS Notice CP261: IRS accepted your S corporation election

IRS Notice CP261 is an information letter from the IRS. The IRS accepted your Form 2553 election to be an S corporation. The start date may differ from the one you asked for. Letters in this group share account information with you.

What this letter usually means

The IRS accepted your Form 2553 election to be an S corporation. The start date may differ from the one you asked for. Keep it with your tax records in case you need it later.

Category: Information and other notices

What people usually do first

Keep the notice, and file Form 1120-S and your employment tax returns on time.

What to have ready

What may come next

This letter does not point to a specific follow-up letter. Any later step will be described in mail from the IRS.

Read the IRS page

The IRS letter itself is the final word on what it means for you. Read the IRS page for CP261.

Common questions about CP261

What is IRS notice CP261?

The IRS accepted your Form 2553 election to be an S corporation. The start date may differ from the one you asked for.

How long do I have to respond to a CP261 notice?

The date to respond or pay by, if there is one, is printed on your letter. Check it, and read the IRS page for CP261 for more.

Is a CP261 notice a scam?

A real CP261 comes by mail and should match your own records. You can also sign in to your IRS Online Account on irs.gov to see your account directly.

What should I have ready for a CP261 notice?

The CP261 notice, A copy of your Form 2553, Shareholder details for the Schedules K-1, Your employment tax records.

Scan your letter in the OweRight iPhone app

The OweRight app can tell you what a CP261 letter is and points you to the IRS page for it.

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OweRight is not the IRS and does not give tax or legal advice.

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