- What it means
- Entity: election or filing requirement correspondence
- Respond within
- The date printed on the notice
- When to get help
- A rejected S election with a tax year already run, or a revoked exemption, are both worth professional help; the relief procedures are technical.
The first move
Check the effective date on the notice against the date you requested. A wrong effective date is the most common problem, and it is fixable if caught early.
What letters in this family have in common
CP261 accepts an S corporation election and states the effective date. CP264 says the election was not accepted, usually because it was late or a shareholder consent was missing; late election relief is available under Rev. Proc. 2013-30. CP277 and CP279 confirm entity classification elections on Form 8832. CP211 series notices go to exempt organizations about Form 990 extensions. CP120 series notices tell an exempt organization its status was revoked or must be confirmed. CP259 asks why a required return was not filed.
For an exempt organization, the automatic revocation notice (CP120A) is the one that matters: three missed 990s and the exemption is gone until reinstated.
What to gather
- The notice with the effective date
- The election form as filed (2553, 8832, 1023, 1024) with proof of the filing date
- Shareholder or member consents
- For exempt organizations: the last three years of Form 990 filings
How to write back
- Document cover letter: A one-page cover letter for documents you are sending in response to an IRS request: what the notice asked for, what is enclosed, and nothing else.
Closest built pages
- CP261: S corporation election accepted
- CP264: S corporation election not accepted
- CP277: Entity classification election accepted
- CP120A: Exempt status automatically revoked
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.