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In the IRS’s own words · not reviewed by VALID
CP290 notice explained, in the IRS’s own words
We accepted your election to become an Electing Small Business Trust (ESBT).
Read the full CP290 page on irs.gov ↗
What this notice is about
We accepted your election to become an Electing Small Business Trust (ESBT).
What you need to do
- Timely file Form 1041, U.S. Income Tax Return for Estates and Trusts PDF
- Include Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc. PDF showing your ownership in the S corporation.
- File a paper return with all required schedules.
- Keep this notice for your records.
For more information:
- S Corporations
- About Form 1120-S, U.S. Income Tax Return for an S Corporation
- S Corporation Compensation and Medical Insurance Issues
- S Corporation Employees, Shareholders and Corporate Officers
- S Corporation Stock and Debt Basis
- Special Rules for Health Insurance Costs of 2-Percent Shareholder-Employees — IRB 2008-2, Notice 2008-1
- Publication 542, Corporations
- Publication 17, Your Federal Income Tax
How do I end the ESBT election?
Only the Commissioner of Internal Revenue can stop this election. See IR Bulletin 2012-1 for instructions
What to do next
- Write down the date on the letter today.
- Look the number up on irs.gov yourself. Don’t trust a link or phone number from anyone else.
- If it says you owe money or proposes changes to your return, take it to a licensed CPA, EA or tax attorney before that date.
Not advice. Not a filing. Verify with a licensed professional. Rules change by year and facts.