Understanding tax filing extensions doesn't have to be complicated. If your tax-exempt organization or employee benefit plan needs more time to file its annual return, Form 8868 is your solution. This guide breaks down everything you need to know about the 2019 version of this form in plain English.

What the Form Is For

Form 8868 is the IRS's official extension request form for tax-exempt organizations, trusts, and certain other entities that need extra time to file their annual returns. Think of it as a "get out of jail free card" for your filing deadline—but only for the deadline to file, not to pay any taxes owed.

The 2019 version of Form 8868 allows organizations to request an automatic 6-month extension of time to file various returns, including Form 990 (the main information return for exempt organizations), Form 990-EZ (the short version), Form 990-PF (for private foundations), Form 990-T (for reporting unrelated business income), Form 4720 (excise taxes on charities), Form 5330 (excise taxes related to employee benefit plans), and several other specialized returns.

The key word here is "automatic." Unlike some IRS forms that require approval, Form 8868 grants you an extension simply by filing it properly and on time. You don't need to explain why you need more time or wait for the IRS to respond with approval. File the form correctly, pay any taxes due, and you automatically get six additional months. IRS.gov

When You’d Use Form 8868 (Late/Amended Filings)

You'll use Form 8868 when you realize you can't meet your organization's original filing deadline. The form must be filed by the regular due date of the return you're extending. For most organizations with a calendar year ending December 31, 2019, the original deadline for Form 990 or Form 990-EZ would be May 15, 2020. Filing Form 8868 by that date would extend your deadline to November 16, 2020.

Timing is everything. If your tax year ended on a different date, your deadlines will vary. The general rule is that exempt organization returns are due on the 15th day of the 5th month after the tax year ends. When that date falls on a weekend or holiday, the deadline moves to the next business day. IRS Return Due Dates - 2019

Important limitation: Form 8868 cannot be used to extend the filing of Form 990-N (the electronic postcard filed by small organizations). It also doesn't apply to amended returns. If you've already filed your return and need to correct it, you'll file an amended return using the same form (like Form 990-X for corrections), but Form 8868 doesn't come into play for amendments.

You must file a separate Form 8868 for each return you need to extend. For example, if your organization needs to file both Form 990 and Form 990-T, you'll need two separate Form 8868s—one for each return type.

Key Rules or Details for 2019

The 2019 version of Form 8868 brought some welcome simplifications. Previously, organizations could request a 3-month extension and then apply for an additional 3 months. In 2019, this changed to a single automatic 6-month extension, streamlining the process considerably.

Electronic Filing

The IRS strongly encourages electronic filing. You can e-file Form 8868 through approved tax software or an authorized e-file provider. The only exception is Form 8870 (related to certain personal benefit contracts), which must be filed on paper and mailed to the IRS in Ogden, Utah. IRS.gov

Payment Requirements

This is crucial—extending your filing deadline does not extend your payment deadline. If your organization owes taxes, you must estimate that amount and pay it by the original due date. Payment can be made electronically through the Electronic Federal Tax Payment System (EFTPS) or, for small private foundations owing less than $500 in investment income tax, by check or money order attached to Form 8868.

No Signature Required

Unlike many IRS forms, Form 8868 doesn't require a signature, which simplifies the filing process.

Penalties Still Apply

If you don't pay at least 90% of the tax due by the original deadline, you may face late payment penalties of 0.5% per month (up to 25% total), plus interest. Late filing penalties can also apply if you miss the extended deadline.

Revocation Risk

If your organization fails to file required returns for three consecutive years, your tax-exempt status will be automatically revoked retroactively to the original filing date. An approved extension counts toward preventing this, but you must actually file the return during the extension period.

Step-by-Step (High Level)

Filing Form 8868 involves a straightforward process:

Step 1: Gather Your Information

Collect your organization's name, Employer Identification Number (EIN), address, and the contact information for the person who maintains your books and records.

Step 2: Identify the Return Type

Determine which return you're extending (Form 990, 990-EZ, 990-PF, 990-T, etc.) and find the corresponding Return Code from the form. For example, Form 990 or 990-EZ is Code 01, Form 990-PF is Code 04, and Form 990-T for corporations is Code 07. Enter only one code per Form 8868.

Step 3: Specify the Tax Period

On Line 1, indicate whether your extension is for a calendar year or fiscal year, and specify the exact dates. Calculate the extended due date by adding 6 months to your original due date and enter that date.

Step 4: Calculate Tax Information (Lines 3a-3c)

Even if your organization doesn't owe taxes, you must complete these lines. Estimate your tentative tax liability (Line 3a), subtract any credits or estimated payments already made (Line 3b), and calculate the balance due (Line 3c). If you owe nothing, enter zero.

Step 5: Pay Any Balance Due

If Line 3c shows a balance, pay it by the original due date using EFTPS or the small foundation check option. Write your tax year, "Form 8868," and your EIN on any check.

Step 6: File the Form

Submit Form 8868 electronically through approved software or mail it to: Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0045. File by your original return due date—not a day later.

Common Mistakes and How to Avoid Them

Mistake #1: Missing the Deadline

Filing Form 8868 after your original due date doesn't give you an extension—it's too late. Mark your calendar well in advance. If you're uncertain about your due date, check the IRS Return Due Date Table or consult with a tax professional.

Mistake #2: Confusing Extension to File with Extension to Pay

This is the most common misunderstanding. Form 8868 only extends your time to file paperwork, not your obligation to pay taxes. If you owe taxes and don't pay by the original deadline, interest and penalties will accrue from that date, regardless of your extension.

Mistake #3: Using One Form for Multiple Returns

Each return type requires its own Form 8868. Organizations often mistakenly think one extension covers everything. If you need to extend both Form 990 and Form 990-T, file two separate Forms 8868.

Mistake #4: Incorrect Return Code

Entering the wrong Return Code or checking multiple boxes can cause processing delays or rejection of your extension. Double-check the Return Code table on the form and enter only the code that matches the specific return you're extending.

Mistake #5: Failing to File the Actual Return During the Extension Period

Getting an extension doesn't mean you can forget about filing. If you don't file your return by the extended deadline, you'll face late filing penalties and risk automatic revocation of your exempt status after three consecutive years of non-filing.

Mistake #6: Not Keeping Documentation

Always keep a copy of your filed Form 8868 and proof of filing (electronic confirmation or certified mail receipt). If the IRS later questions whether you filed on time, you'll need evidence.

What Happens After You File

Once you properly file Form 8868, your extension is automatically granted—there's no waiting for IRS approval or confirmation letter. The extension becomes effective immediately upon timely filing.

Your organization now has until the extended due date (six months from the original deadline) to file the actual return. For example, if your Form 990 was originally due May 15, 2020, and you filed Form 8868 by that date, you now have until November 16, 2020 to file Form 990.

During this extension period, you should:

• Complete Your Return: Use the extra time to gather accurate information, compile financial statements, and prepare a thorough, compliant return. Rushing often leads to errors that can trigger audits or penalties.
• Track the Extended Deadline: Put the new deadline on your calendar with reminders well in advance. Missing the extended deadline means facing late filing penalties.
• Maintain Records: Keep all documentation supporting your return entries. The IRS can audit exempt organizations and will request substantiation for reported information.

If you filed electronically, you should receive an electronic acknowledgment within 24-48 hours confirming receipt. Keep this confirmation in your records. Paper filers won't receive confirmation unless there's a problem, so consider sending your form via certified mail with return receipt for proof of filing.

Interest and Penalties: If you owed taxes but didn't pay enough by the original due date, interest continues accruing daily at the federal rate plus 3%. The late payment penalty of 0.5% per month also applies to unpaid amounts. However, if you paid at least 90% of your total tax by the original deadline and pay the remainder by the extended deadline, the late payment penalty is waived.

No Additional Extensions: The 6-month extension is the maximum allowed. Unlike individual tax returns, which can sometimes receive additional extensions in extraordinary circumstances, exempt organizations are limited to this single 6-month period. Plan accordingly.

FAQs

Q1: Can I e-file Form 8868 for free?

Yes. The IRS encourages electronic filing and provides free e-file options through authorized providers. Many tax software programs for exempt organizations include e-filing of Form 8868 at no additional charge. Check the IRS e-file page for approved providers.

Q2: What happens if I file Form 8868 but then realize I don't need the full extension?

That's perfectly fine. Filing Form 8868 gives you the option to use up to six months, but you can file your actual return anytime before the extended deadline. There's no penalty for filing early after getting an extension.

Q3: Do I need to explain why I need an extension?

No. Unlike some extension requests, Form 8868 grants an automatic extension without requiring any explanation or justification. You simply file the form and the extension is granted—no questions asked.

Q4: Can a group of related organizations file one Form 8868?

Yes, if you're part of a group exemption. A central organization can file one Form 8868 for a group return, but must enter the four-digit Group Exemption Number (GEN) and attach a list with names and EINs of all member organizations included in the extension request. IRS Form 8868

Q5: What if my organization doesn't have an office in the United States?

Foreign organizations should check the box on Form 8868 indicating no U.S. office, follow the foreign address format specified in the instructions, and check specific instructions for any special payment requirements for foreign entities.

Q6: Does Form 8868 work for state filings?

Form 8868 is a federal form that only extends federal filing deadlines. Many states have their own annual registration or filing requirements for tax-exempt organizations and require separate state-specific extension requests. Check your state attorney general's office or state tax authority for state-level requirements.

Q7: Can I file an extension if my organization's tax-exempt status is pending?

Yes. Organizations awaiting determination of their exempt status can still use Form 8868 to extend filing deadlines. Enter your EIN and indicate the appropriate return type. If your exemption is later approved retroactively, the extension will apply to those periods.

Sources

Sources: All information in this guide is based on official IRS publications including Form 8868 (Rev. January 2019), IRS Form 8868 instructions and information, and IRS extension guidance.

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