What This Notice Means

The IRS accepted your Form 8832, Entity Classification Election. Acceptance is based on the accuracy of the information you provided. If anything on the form was wrong, the acceptance rests on bad facts.

What to Do

  • File the return that matches your election.
  • Notify the IRS if your address changes.
  • Keep this notice for your records. You will need it.

Which Return to File

It depends on how many and what types of owners the entity has.

Single owner, elected to be disregarded:

  • U.S. individuals and resident aliens report the entity's income and expenses on Form 1040, using Schedule C, E, or F.
  • Nonresident aliens use Form 1040-NR with Schedule C, E, or F.
  • U.S. owners of a foreign disregarded entity file Form 8858 with their returns.

Elected to be taxed as a corporation:

  • Domestic corporations generally file Form 1120.
  • Foreign corporations with a U.S. trade or business or U.S. source income not fully covered by withholding generally file Form 1120-F.
  • Foreign-owned situations can require Forms 5472, 5471, or 8621.

Elected to be a partnership:

  • Domestic partnerships generally file Form 1065.
  • Foreign partnerships with effectively connected income or U.S.-source income generally file Form 1065.
  • U.S. partners of foreign partnerships may need Form 8865.

Withdrawing the Election

Send a written request to the address where you filed Form 8832. It must be received by the due date of your tax return for the date you want to withdraw.

Foreign-owned entities face steep information-return requirements. If your entity has foreign owners or foreign operations, confirm every required form before the first return is due.

If you received a CP277 notice and want to be sure you're filing the right returns, call us at (813) 229-7100.