Filing guide
CP261: Your S-Corp Acceptance Letter (and What to Do While Waiting)
After Form 2553 is filed, the IRS mails notice CP261 accepting the election — typically within 60 days. The waiting period generates more anxiety (and more lost elections discovered years later) than the filing itself.
The 60-day window and the 2-month rule
The instructions say: if you haven't heard within 2 months of filing (5 months if you requested a business-purpose tax year), call 800-829-4933 to follow up. Every filing we handle gets that date calendared — silence past two months triggers our follow-up, not a surprise at tax time.
Lost your CP261?
Request verification letter 385C from the same IRS business line. Banks and payroll providers accept it as proof of S-corp status. [Verify letter number at publish]
While you wait
Your fax transmission receipt is your interim proof of timely filing. Set up payroll on the assumption the election stands — an accepted election is retroactive to your effective date, and reasonable-salary payroll is the first thing the S-corp needs anyway.
Want it handled?
S-Corp Election Filing does this for $149 — or follow the steps above yourself, free.
See pricingStraight answers
Can I file my 1120-S before the CP261 arrives?
The return can be filed consistent with the election you requested; if acceptance is still pending at the deadline, extend. Your CPA will have a view — bring them the fax receipt.