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What is IRS Form 8868?

A complete guide for nonprofits to better understand the filing requirements of Extension Form 8868, and more!

*IRS accepts electronic filing of 8868 Only After March 17, 2024.

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IRS Form 8868, Application for Automatic Extension of Time To File an Exempt Organization Return

- Updated October 30, 2023 - 8.00 AM Admin, ExpressExtension

Nonprofit organizations that have been granted tax-exempt status by the IRS are required to file 990 Series Returns and/or certain other annual returns with the IRS. These forms provide the IRS with an overview of the financials and activities of the organization.

Tax-exempt organizations that need more time to file their annual information returns can file IRS Form 8868 to request an extension of time.

This article provides a detailed overview of Form 8868 and it’s filing requirements.

What is the Purpose of Form 8868?

Form 8868 is an IRS tax extension form used by tax-exempt organizations to request an extension of up to 6 months to file their annual information returns.

This extension is automatic, which means the IRS doesn’t require you to provide any reason for making the request. The 6-month extension will be granted as long as the form is filed accurately and on time. Any balance due to the IRS will also need to be paid when requesting
the extension.

Who Can File Form 8868?

Generally, Form 8868 can be filed by
tax-exempt organizations, nonexempt charitable trusts, private foundations, and certain other trusts that need more time to file their annual returns with the IRS.

Which Forms does Form 8868 apply to?

Here is the list of forms whose deadlines can be extended using
Form 8868:

  • Form 990 or Form 990-EZ
  • Form 990-PF
  • Form 990-T (For sec. 401(a) or 408(a) trust, other trusts, and Corporations)
  • Form 4720 (For individuals and other than an individual)
  • Form 1041-A
  • Form 5227
  • Form 6069
  • Form 8870 (Paper filing)

What Information is required to fill out Form 8868?

Form 8868 is a simple, automatic extension. Filling out this form is a straightforward process, there are only two parts.

You will need the following basic information to file Form 8868:

In addition to basic information such as the organization’s name, address, and EIN, you will also need,

  • Which tax form you are requesting an extension for
  • Total tax liability and any payments made for the tax year
  • Any balance due to the IRS

What are the changes made to Form 8868 for the upcoming tax year 2023?

The IRS has recently released the draft version of Form 8868 for the 2023 tax year. Apart from the existing tax forms, the filers can now use Form 8868 to request an extension for one more form, i.e., Form 5330 (individuals & other than individuals)

What is Form 5330?

Form 5330 is an IRS form that individuals or entities can file to report and pay any taxes that are in relation to employee benefit plans.

The filers requesting an extension for Form 5330 must provide some additional information such as Plan Name, Plan Number, and Plan Year Ending.

Besides, the IRS has also added a new part - Part III (Extension of Time To File Form 5330), which the filers must complete.

Note: The changes made in draft forms may be subjected to changes until the final release.

How to file Form 8868?

You can either file Form 8868 electronically, or you can submit a paper copy. However, it is worth noting that the IRS prefers that organizations e-file their Form 8868. The IRS is able to process these forms faster and provide updates on their status.

If you choose to paper file the form, you will need to complete and
mail it to:

Address Icon
Department of the Treasury,
Internal Revenue Service Center,
Ogden, UT 84201-0045.

Note: There is an exception. When filing an extension for Form 8870, the IRS requires that you file a paper copy of Form 8868 using the address given above.

When is the Deadline To File Form 8868?

Form 8868 must be filed on or before the date that the original return is due. For example, an organization that is filing Form 990 must file their extension by the 15th day of the 5th month after the organization's accounting period ends.

If the organization follows the calendar tax year, the deadline for filing Form 8868 is
May 15, 2024.

What are the Late payments & filing Penalties?

Organizations may be imposed with an IRS penalty of 0.5% of any unpaid tax amount every month the filing is late unless the organization can provide a reasonable explanation for not paying the tax on time.

Organizations that fail to file their information return on time, or request an extension (Form 8868), may be subject to paying a late filing penalty unless there is a reasonable cause for the late filing.

Note: The penalty amount will vary depending on the
information return.

E-file Form 8868 with ExpressExtension in Minutes!

ExpressExtension is an IRS-authorized e-file provider of IRS tax
extension forms.

Our step-by-step filing process offers clear guidance to help you
e-file your Form 8868 easily! Once you transmit the form to the IRS, we will provide you with status updates until the IRS accepts it.

If the extension is rejected, we will provide the reason from the IRS and allow you to correct and retransmit the form for free. Plus, our live customer support team is available to assist via phone, email, and
live chat.

Article Source for Form 8868:

https://www.irs.gov/pub/irs-pdf/f8868.pdf

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