Dephosphorylation of RNA polymerase II carboxylterminal domain (CTD) is required to resume sequential transcription cycles. FCP1 (TFIIF-dependent CTD phosphatase 1) is the only known phosphatase targeting RNAP II CTD. Here we show that in Xenopus laevis cells, xFCP1 is a phosphoprotein. On the basis of biochemical fractionation and drug sensitivity, casein kinase 2 (CK2) is shown to be the major kinase involved in xFCP1 phosphorylation in X. laevis egg extracts. CK2 phosphorylates xFCP1 mainly at a cluster of serines centered on Ser 457 . CK2-dependent phosphorylation enhances 4-fold the CTD phosphatase activity of FCP1 and its binding to the RAP74 subunit of general transcription factor TFIIF. These findings unravel a new mechanism regulating CTD phosphorylation and hence class II gene transcription.RNA polymerase II (RNAP II) 1 is a multiprotein complex in charge of eucaryotic mRNA synthesis (1). Rpb1, the largest RNAP II subunit, is extensively phosphorylatable on its carboxyl-terminal domain (CTD), which consists of up to 52 repeats of the consensus heptapeptide Tyr-Ser-Pro-Thr-Ser-ProSer (2). Two phosphoisoforms of RNAP II coexist in somatic cells in a dynamic equilibrium (3). The hypophosphorylated IIA form assembles into preinitiation complexes, whereas the hyperphosphorylated IIO form elongates mRNA synthesis and recruits mRNA processing factors (4). The conversion from IIA to IIO occurs during initiation and elongation of transcription and involves CTD kinases such as CDK7 and CDK9, respectively, included in the transcription factors TFIIH and p-TEFb (5, 6). CTD dephosphorylation is required to recycle RNAP II after a transcriptional round (7).In contrast to the numerous CTD kinases identified, only one CTD phosphatase has been characterized so far. It has been purified from yeast and mammalian cells (8,9), and the corresponding cDNA has been cloned by a two-hybrid screen using the RAP74 subunit of the general transcription factor TFIIF as a bait (10). FCP1 (TFIIF-dependent CTD Phosphatase 1) consists of a single 150-kDa polypeptide subunit (11, 12). FCP1does not display any homology with other known protein phosphatases but possesses an unusual catalytic site present in a subset of phosphotransferases (13,14). FCP1 is a highly specific phosphatase as the CTD within a functional RNAP II remains its only known protein substrate. FCP1 is recruited to RNAP II through docking sites on the Rpb4 subunit of RNAP II and on the RAP74 subunit of TFIIF (15, 16).FCP1 activity is regulated at various levels. First, competitive binding of general transcription factors TFIIF and TFIIB to FCP1 carboxyl-terminal domain, respectively, stimulates or inhibits its phosphatase activity (15,17). Second, free RNAP IIO molecules are better substrates than molecules engaged in transcription elongation complexes (18,19). Third, inhibition of FCP1 phosphatase activity by the human immunodeficiency viral protein Tat may contribute to stimulate transcriptional elongation from the human immunodeficiency virus promoter (20, 21).We had...