InformationalKeep permanently and check the effective date
IRS CP261: S Corporation Election Accepted
The IRS accepted the S corporation election. Review the effective date and retain the approval with the entity’s tax records.
Editorially reviewed by the Law Offices of Darrin T. Mish, P.A.•Updated October 1, 2026
Notice
CP261
Urgency
Informational
Deadline
Keep permanently and check the effective date
Your first move
The IRS accepted the S corporation election. Review the effective date and retain the approval with the entity’s tax records.
Your election was accepted
CP261 confirms acceptance of the S corporation election submitted on Form 2553. Keep this notice permanently.
Check when it takes effect
Compare the effective date with the date requested on Form 2553. The IRS notes that a late election can produce a different effective date, and relief may be available. Have your tax professional review any mismatch before preparing returns based on an assumed S corporation start date.
Maintain the ongoing records
IRS guidance reminds recipients to file Form 1120-S, shareholder Schedules K-1, and applicable employment returns on time. Keep the election, approval, and any later correspondence in the same permanent entity file.
This is different from EIN confirmation. Save both documents; they answer different questions about the business.
Want a second set of eyes on this letter?
Free consultation with Darrin T. Mish, a Tampa tax attorney licensed since 1993 and admitted to the U.S. Tax Court. Bring the letter.