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 these letters 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 CP120 series notices tell an exempt organization its status was revoked or must be confirmed.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

Letters in this family are usually answered by phone, online, or with the specific form the notice names rather than a letter. Where a written response helps, the document cover letter covers it.

Notices in this family

NoticeWhat it means
CP119Exempt organization: return or information needed
CP120Exempt organization: confirm your status or filing requirement
CP120AExempt organization: exempt status automatically revoked for three years of missed returns
CP120BExempt organization: status correspondence
CP130Exempt organization: filing requirement changed
CP142Filing requirement or return type notice
CP143Filing requirement or return type notice
CP152Confirmation of a return filed (bond or exempt org)
CP152AConfirmation of a return filed
CP211A to CP211EExempt organization: Form 8868 extension approved or denied
CP217 to CP221Entity: election or filing requirement correspondence
CP249A to CP249CExempt organization: return processing correspondence
CP255Entity: election correspondence
CP261S corporation election accepted, with effective date
CP261XS corporation election correspondence
CP262S corporation election revoked or terminated
CP264S corporation election not accepted
CP265S corporation status terminated
CP266S corporation election correspondence
CP277Entity classification election (Form 8832) accepted
CP278 to CP292Entity classification and election correspondence
CP299Entity status correspondence

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.

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.

Sources

  1. IRS, Understanding your CP261 notice
  2. IRS, Automatic revocation of exemption