IRS CP266 Notice: Your S Corporation Election Was Referred for Review

What This Notice Means

You filed Form 2553, Election by a Small Business Corporation, to be treated as an S corporation. CP266 tells you the IRS service center referred that election to the IRS National Office in Washington, DC (Chief Counsel) for review. The election hasn't been accepted or denied yet.

What Happens Next

After the review, you'll get written notice that the election was either accepted or denied.

How to File in the Meantime

Until you're notified, you're considered a corporation. File Form 1120, U.S. Corporation Income Tax Return, when it's due. Don't file Form 1120-S until the S election is approved.

What to Do

• Keep this notice with your permanent corporate records.
• Respond quickly if Chief Counsel contacts you with questions. You may be subject to a user fee for the review.
• Follow up if you hear nothing. If you don't hear from the IRS within 3 months from the date you filed your election, write to the address on the notice and include a copy of the notice.

Why This Matters

The election controls how the business is taxed and how the owners report income. Filing the wrong return type while the election is pending creates a mess to unwind later. Hold to Form 1120 until you have a written decision.

If your S election is stuck in review or you need help with a late or denied election, call us at (813) 229-7100.