IRS Notice CP261: S corporation election accepted
Quick answerThe IRS accepted your Form 2553 election, so your corporation (or LLC) is treated as an S corporation from the effective date shown.
Letter / noticeCP261
MeaningS corporation election accepted
Action needed?Yes — see steps
What happens next
Keep this notice — banks and accountants may ask for it.
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What you should do
- Note the effective date
- File Form 1120-S for S corporation years
Scam check: the IRS first contacts you by mail. Use only the phone numbers printed on your letter or on IRS.gov — never ones from a text, email or unofficial site.
Frequently asked questions
What does IRS Notice CP261 mean?
The IRS accepted your Form 2553 election, so your corporation (or LLC) is treated as an S corporation from the effective date shown.
What should I do?
Note the effective date File Form 1120-S for S corporation years
How long does it take?
Keep this notice — banks and accountants may ask for it.
Sources
- IRS: Understanding your IRS notice or letter
- IRS: Get Transcript
- Taxpayer Advocate Service (independent help inside the IRS)
Written by the editorial team and checked against the official sources above. See our editorial policy.
By the TranscriptCodes Editorial Team · Last reviewed 2026-11-12.