The CP261 Notice officially confirms that your S Corporation status has been confirmed. You will receive a copy of this notice in the mail within 3-6 months after Form 2553 is filed. When you receive this, it means that the IRS processed the 2553 form and has officially approved your election, and your LLC will be treated as an S Corporation for tax purposes.

Going forward, your S Corporation's business activity will be reported on the 1120S Business Tax Return. It’s a good idea to keep a copy of this notice for your records and upload it into your Collective Documents in your Dashboard.

S Corp Confirmation Letter (385C Notice)

If you can't find your CP 261 letter, or have not received the letter within 6 months of submitting your Form 2553, don't worry - you can request a 385C letter, which serves as alternative proof of your S Corporation's election. You can request the 385C letter to be mailed to you, it could take 10-14 business days to arrive. If you do not have a fax number, you can have the form faxed directly to Collective, our fax number is +1 650-275-4240 (it is a private and secure fax line).

Steps

1. Call 1-800-829-4933 (the “business and specialty tax line”).
2. Press option 7 for "Other Questions".
3. Press option 2 for "Submitted forms or Tax History".
4. Press option 1 for "Questions about Corporate".
5. The IRS agent will ask a few security questions to confirm you own your LLC.
6. Tell the IRS agent that you need to confirm your LLC is treated an S-Corp, confirm the S-Corp election date, and request a copy of the 385C Letter.
7. Tell the IRS agent whether you’d like to receive the 385C Letter by fax.
8. Tip: The IRS agent will ask, “Do you have a private and secure fax next to you?” If using our fax number, say "yes". Our fax number is +1 650-275-4240.

Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as legal, financial, or tax advice. It is not intended to be a substitute for obtaining legal, accounting, or other financial advice from an appropriate and/or licensed  adviser, or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.