S-Corp Filing Nightmare: Missing CP261 Letter and Can't Get 385C Verification

This is unfortunately a common issue with S-Corp elections right now. The IRS is experiencing significant backlogs with processing Form 2553 applications and issuing the corresponding CP261 notices. First, you should immediately request an extension for filing your business tax return using Form 7004. This gives you an automatic 6-month extension and protects you from late filing penalties while you sort this out. For the missing CP261, you need to call the IRS Business & Specialty Tax Line at 800-829-4933. When the automated system asks why you're calling, say "Form 2553" clearly. This should route you to the right department. Be prepared with your EIN, company name, and the date the 2553 was submitted. Ask specifically for the status of your S election and request that they research whether it was received and processed. If they can't find it, you may need to resubmit Form 2553 and check the "late election relief" box, including a statement explaining that you believed it was filed timely but there's no record of processing. In the meantime, document all your calls and attempts to resolve this.

I went through EXACTLY this headache last year! After dozens of calls to the IRS, I finally discovered taxr.ai (https://taxr.ai) which helped me break through the logjam. Their AI system analyzed our previous submissions, identified the likely hold-up, and generated a perfect letter to submit to the IRS. What made the difference was how their system handled our specific S-Corp election issue. It identified that we needed to reference certain IRS procedural rules in our communication, which immediately got the attention of the right department. Within 2 weeks of using their guidance, we had our 385C verification letter in hand. I'm not affiliated with them at all, just a small business owner who was pulling my hair out just like you before finding this solution!

Just wanted to update that I took the advice about taxr.ai and it actually worked! After uploading our rejection letter and previously submitted Form 2553, their system identified that our original submission was missing a required shareholder consent statement, which is why the IRS couldn't process it properly. The service generated a perfect letter explaining the situation, requesting late election relief with the proper citations of Rev. Proc. 2013-30, and included a properly formatted shareholder consent statement. I sent it certified mail to the IRS address they recommended, and THREE WEEKS LATER we received our CP261 notice! Honestly wish I'd known about this months ago before all the stress and wasted time on hold. My accountant is now able to file our S-Corp return without issues.

After dealing with similar IRS nightmares, I discovered a service called Claimyr (https://claimyr.com) that literally saved my sanity. They have a system that gets you through to an actual IRS representative without the usual hours-long wait. I was skeptical at first, but I was desperate after spending entire days on hold. You can see how it works in their demo video here: https://youtu.be/_kiP6q8DX5c. Basically, their system waits on hold for you and calls you back when an actual human picks up. When I finally got through to a real person at the IRS, I explained my situation about the missing CP261 and was transferred directly to the Business Entity department. The agent was able to look up my S-Corp election status immediately and email me a verification letter the same day. Completely changed my view on dealing with the IRS.

I need to eat my words and apologize to Profile 22. After my skeptical comment about Claimyr, I decided to try it myself since I was also dealing with an IRS issue (different from S-Corp stuff, but still needed to talk to someone). I was 100% convinced it would be a waste of money, but I was desperate after trying to get through for weeks. Their system actually called me back in about 45 minutes with an IRS agent already on the line! I was completely shocked. The agent I spoke with was able to look up my business information and confirmed they had received our S-Corp election but it was pending review. She expedited the process and emailed me a temporary confirmation I could use for filing purposes. Sorry for being so cynical before. Sometimes good solutions actually exist!

Has your accountant checked the IRS e-Services portal? Sometimes the CP261 notification is available there even if the paper copy never arrived in the mail. Our accounting firm was able to access our client's S-Corp approval through the portal when they never received the physical letter. Also, if you have proof the Form 2553 was submitted (certified mail receipt, fax confirmation, etc.), you can file as an S-Corp with a statement attached explaining the situation. Include a copy of the original 2553 submission and any tracking information. The IRS will process it alongside your return.

One thing to consider - was the Form 2553 submitted within the IRS deadline? For a newly formed LLC electing S-Corp status, you must file within 2 months and 15 days of formation. For an existing LLC changing to S-Corp, it needs to be filed within 2 months and 15 days of the start of the tax year you want it effective. If it was submitted late, you needed to include a reasonable cause statement requesting late election relief. If that wasn't included, the IRS likely rejected it but the rejection notice may have been lost in the mail too.

I'm dealing with a very similar situation right now! My LLC elected S-Corp status in January, and we're also missing the CP261 notice. After reading through all these suggestions, I'm definitely going to try the Taxpayer Advocate Service route first since it's free. One thing I learned from my tax attorney is that you can also send a written request directly to the IRS Cincinnati office (where they process most Form 2553 elections) asking for duplicate confirmation of your S-Corp election. Include your EIN, business name, date of election, and a signed statement from an officer requesting the duplicate notice. Send it certified mail with return receipt. The address is: Internal Revenue Service, Cincinnati Campus, P.O. Box 6500, Florence, KY 41022-6500. Mark the envelope "ATTN: Entity Control Unit - S Corp Election Inquiry." This bypasses the phone system completely and creates a paper trail. It may take 4-6 weeks, but at least you'll have documentation that you formally requested the information if you need to prove your efforts later.

I'm going through this exact same nightmare right now! Filed our S-Corp election back in February and never got the CP261. My accountant has been useless - keeps telling me to "just call the IRS" like that's some magical solution. After reading all these responses, I'm definitely going to try multiple approaches at once. The Taxpayer Advocate Service seems like the most promising free option, and I love the idea of writing directly to the Cincinnati office to create a paper trail. Has anyone had success with getting the 385C verification letter as an alternative to the CP261? My understanding is that it serves the same purpose for tax filing, but I'm not sure if it's easier to obtain or if you run into the same runaround when requesting it. Also, for those who used the third-party services mentioned here - were you able to use the documentation they provided directly with your tax preparer, or did you still need additional IRS confirmation? This whole situation is so frustrating. The IRS creates these requirements but then makes it nearly impossible to actually comply with them!

I went through this exact same nightmare with my S-Corp election last year! After months of getting nowhere with phone calls, here's what finally worked for me: 1. **Document everything** - Keep a log of every call you make with dates, times, and who you spoke with. This becomes crucial evidence later. 2. **File Form 911 with the Taxpayer Advocate Service** - This is their official request for assistance form. You can download it from irs.gov or call 877-777-4778. Given that you're past filing deadlines and have made multiple unsuccessful attempts, you definitely qualify. 3. **Try the "entity determination" route** - When calling the IRS, instead of asking about Form 2553 or CP261, ask to verify your "entity classification for tax purposes." This sometimes routes you to a different department that can actually see your election status. 4. **Consider filing a complaint** - If all else fails, you can file a complaint with the Treasury Inspector General for Tax Administration (TIGTA) at tigta.gov. They investigate IRS service issues and can sometimes get things moving when nothing else works. The key is persistence and trying multiple angles simultaneously. Don't rely on just phone calls - use the written requests to Cincinnati that others mentioned too. The paper trail will be important if you need to prove your good faith efforts later. Hang in there - I know how maddening this process is, but you will get through it!

I've been following this thread as someone who went through a nearly identical situation with my LLC's S-Corp election. After 8 weeks of phone tag with the IRS and mounting stress, I finally got resolution using a combination of the strategies mentioned here. What ultimately worked was a multi-pronged approach: I filed Form 911 with the Taxpayer Advocate Service, sent a certified letter to the Cincinnati office requesting duplicate confirmation, AND kept calling the IRS using the "entity determination" language suggested by Aurora St.Pierre. The TAS caseworker was assigned within 10 days and became my advocate with the IRS. Meanwhile, the Cincinnati office responded in about 5 weeks with confirmation that they had processed our election but the CP261 was sent to an incorrect address due to a clerical error on their end. The key insight I learned: the IRS has serious internal communication issues between departments. Sometimes your election IS processed but the notification system fails. Having multiple channels working simultaneously increases your chances of finding the right person who can access your records. For anyone still struggling with this - don't give up! Document everything, use multiple approaches at once, and remember that TAS is there specifically for situations like this where normal IRS channels have failed. They have authority that regular customer service reps don't have. Good luck to everyone dealing with this bureaucratic nightmare!

I'm dealing with this exact same issue right now and this thread has been incredibly helpful! My LLC elected S-Corp status in March and we're now in the same nightmare of missing CP261 and getting nowhere with phone calls. Based on all the advice here, I'm planning to take a shotgun approach: filing Form 911 with TAS, sending a certified letter to the Cincinnati office, and trying the "entity determination" language when calling. It's frustrating that we have to work this hard just to get basic confirmation from the IRS, but at least now I have a roadmap. One question for those who successfully resolved this - did your tax preparers have any issues accepting the alternative documentation (like the 385C or TAS correspondence) in place of the original CP261? I want to make sure whatever I eventually receive will actually be sufficient for filing purposes. Thanks to everyone who shared their experiences. It's oddly comforting to know this is a widespread issue and not just our accountant's mistake!

I've been lurking on this thread because I'm dealing with the exact same S-Corp election nightmare! Filed Form 2553 back in January, never received CP261, and have been stuck in IRS phone hell for months. Reading through everyone's experiences has been both frustrating and reassuring - frustrating to see how widespread this problem is, but reassuring to know I'm not alone and that there are actually solutions that work. I'm definitely going to try the multi-pronged approach that several people have had success with: Form 911 with TAS, certified letter to Cincinnati, and using the "entity determination" language when calling. The fact that multiple people have gotten results this way gives me hope. One thing I wanted to add based on my research - if you're working with a tax preparer, make sure they understand the Revenue Procedure 2013-30 requirements for late election relief. Even if your Form 2553 was submitted on time, the IRS may still require the late election format if they can't locate your original submission in their system. Thanks to everyone who shared their stories and solutions. This thread should be required reading for anyone dealing with S-Corp election issues!

I'm going through this exact same situation and this thread has been a goldmine of information! My LLC elected S-Corp status in February and we're now dealing with the missing CP261 nightmare too. After reading through all these experiences, I'm convinced the multi-pronged approach is the way to go. I've already started documenting all my previous calls (wish I had done this from the beginning!) and I'm preparing to file Form 911 with TAS while simultaneously sending that certified letter to the Cincinnati office. The "entity determination" language tip from Aurora is brilliant - I tried it this morning and actually got transferred to someone who seemed more knowledgeable, though they still couldn't locate our election. At least it felt like progress compared to the usual runaround! One thing I wanted to mention - my tax attorney suggested also requesting a "Entity Classification Election Acknowledgment" when calling, as this is sometimes easier for IRS reps to locate in their system than searching for Form 2553 specifically. It's the same information but using different terminology that might get you routed to someone who can help. Thanks to everyone who shared their stories and solutions. It's incredibly helpful to know we're not alone in this bureaucratic maze and that there are proven paths to resolution!

I'm currently going through this exact same nightmare! Filed our S-Corp election in March and have been stuck in IRS limbo for months with no CP261. This thread has been incredibly valuable - it's both frustrating and reassuring to see how widespread this issue is. I'm planning to implement the multi-pronged approach that several people have had success with: filing Form 911 with TAS, sending a certified letter to Cincinnati, and using the strategic language tips when calling. The "entity determination" and "Entity Classification Election Acknowledgment" terminology suggestions are brilliant - I tried the entity determination approach yesterday and actually got transferred to someone more knowledgeable for the first time in weeks. One additional tip I learned from my tax attorney: when documenting your calls (which everyone should absolutely be doing), include the employee ID numbers if the representatives provide them. This can be helpful if TAS or Cincinnati needs to reference your previous attempts when working on your case. The success stories from Dmitry, Victoria, and others give me hope that persistence with multiple channels really does pay off. Starting my Form 911 application today and getting that certified letter ready for Cincinnati. Thanks to everyone who shared their experiences - this community support makes navigating this bureaucratic nightmare much less isolating!