If you're running a tax-exempt organization, you know filing deadlines can be stressful. Form 8868 is the IRS's solution for organizations that need more time to get their paperwork in order. This guide breaks down everything you need to know about this form in plain English, based on official IRS guidance for the 2013 tax year.

What the Form Is For

Form 8868 is essentially a "buy more time" request for exempt organizations that can't file their annual returns by the original deadline. Think of it as an officially sanctioned pause button for your filing obligations—but with important limitations.

This form serves tax-exempt organizations (like charities, private foundations, and nonprofits), certain trusts, and sometimes individuals or corporate officers who need to file returns related to employee benefit plans or excise taxes. The form covers a wide range of returns, including Form 990 (the main nonprofit tax return), Form 990-EZ (for smaller organizations), Form 990-PF (for private foundations), Form 990-T (for unrelated business income tax), and several others dealing with excise taxes and employee benefit plans.

Important caveat: Form 8868 only extends your time to file the paperwork—it doesn't extend your time to pay any taxes owed. If you owe money, it's still due by the original deadline, or you'll face interest charges and penalties. IRS Form 8868

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

First Extension (Automatic)

When you realize you can't meet your original filing deadline, you can request an automatic 3-month extension. For most returns, this means an extra three months. However, if you're a corporation filing Form 990-T (for unrelated business income), you automatically get a 6-month extension instead of 3 months. The IRS must grant this first extension as long as you file Form 8868 properly and on time—no questions asked.

Second Extension (Not Automatic)

If three months still isn't enough time, you can request an additional 3-month extension. This gives you a total of 6 months beyond your original deadline (or extends the corporation's Form 990-T deadline even further). However, this second extension is not automatic. You must provide the IRS with a detailed, convincing explanation of why you still can't file. Vague reasons like "my accountant is busy" or simply "illness" without details won't cut it.

Critical Timing Rule

You cannot file for both extensions at the same time. You must first receive the automatic 3-month extension, then file separately for the additional 3 months if needed. According to the IRS 2013 instructions, the form must be filed by your return's original due date to be effective—filing it late won't help you avoid penalties.

Note About Amended Returns

Form 8868 is not for amended returns. If you've already filed your return and discovered errors, you'll use the appropriate amended return form for your situation, not Form 8868.

Key Rules or Details for 2013

Two-Part Structure

The form was divided into Part I (for the automatic 3-month extension) and Part II (for the additional 3-month extension). You only complete the part that applies to your situation—never both at once.

Electronic Filing Available

Starting in 2011, the IRS allowed electronic filing for Form 8868, which continued through 2013. You could e-file for either the automatic or additional extension, making the process faster and providing instant confirmation. The one exception was Form 8870 (relating to certain personal benefit contracts), which had to be mailed in paper format.

Form 990-N Exception

If your organization is small enough to file the simple "e-postcard" (Form 990-N), you cannot use Form 8868 to extend that deadline. Form 990-N must be filed by its original due date, no exceptions.

Return Codes

The 2013 version introduced return codes (numbers 01-12) instead of checkboxes to identify which return you're extending. This streamlined the form and reduced confusion about which return the extension covered.

Payment Requirements

Even though you're extending the filing deadline, any tax owed must still be estimated and paid. Lines 3a-3c (Part I) or 8a-8c (Part II) require you to calculate your tentative tax liability, subtract any credits or payments already made, and include payment for the balance due. Failure to pay at least 90% of your actual tax liability can result in late payment penalties, even with an approved extension.

Group Returns

Central organizations filing group returns for multiple subordinate organizations could file one Form 8868, but had to attach a schedule listing the name, address, and Employer Identification Number (EIN) of each organization covered by the extension request.

Mailing Address

Paper forms had to be mailed to the IRS Center in Ogden, Utah (Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0045). According to the 2013 due date table, deadlines that fell on weekends or holidays were automatically extended to the next business day.

Step-by-Step (High Level)

Step 1: Determine Your Extension Need

Figure out which extension you need. Are you filing for the first time before your original deadline? That's Part I (automatic). Have you already received a 3-month extension but still need more time? That's Part II (additional, not automatic).

Step 2: Gather Your Information

You'll need your organization's basic information: legal name, address, Employer Identification Number (EIN) or Social Security Number (for individuals), and the contact information for whoever has custody of the organization's books and records. You'll also need to know which specific return you're extending (use the return codes 01-12 provided on the form).

Step 3: Calculate Any Tax Due

Even though you're extending the filing deadline, estimate your tax liability. Review your financial records to calculate the tentative tax you expect to owe, subtract any nonrefundable credits and any payments you've already made (including estimated tax payments), and determine if there's a balance due. This amount must be paid with your extension request to avoid penalties.

Step 4: Complete the Appropriate Section

For Part I (automatic extension): Fill in your organization information, enter the return code, indicate the tax year and extension date you're requesting, complete the tax calculation section (lines 3a-3c), and make sure to include payment if required.

For Part II (additional extension): Complete all the same organizational information, provide a detailed written explanation on line 7 explaining why you need additional time (be specific and thorough), complete the tax calculation (lines 8a-8c), and sign the form (Part II requires a signature; Part I does not).

Step 5: File the Form

Submit electronically through an IRS-approved e-file provider (recommended for faster processing), or mail the paper form to the Ogden address. File by your original return due date (for Part I) or by the extended due date from your first extension (for Part II).

Step 6: Make Your Payment

If you owe tax, pay using the Electronic Federal Tax Payment System (EFTPS) or include a check with your paper filing. Keep proof of payment for your records.

Common Mistakes and How to Avoid Them

Mistake #1: Filing Form 8868 Attached to the Return

Many organizations would complete Form 8868 and then attach it to their actual tax return when filing late, thinking this would retroactively grant them an extension. This doesn't work. Form 8868 must be filed separately and before the deadline it's extending, not attached to a late return. IRS Instructions

Mistake #2: Not Paying Estimated Tax

Organizations would request an extension thinking it also extended their payment deadline. Remember: extensions only apply to filing paperwork, not to paying taxes. If you owe tax and don't pay at least 90% of it by the original deadline, you'll owe late payment penalties (½% per month) plus interest, even with an approved extension.

Mistake #3: Weak Explanations for Part II

When requesting the additional 3-month extension, many organizations provided vague reasons like "need more time" or "accountant unavailable." The IRS expects detailed, specific explanations. Good answers include: "Our bookkeeper unexpectedly resigned on [date], and we're still recovering missing financial records needed to complete Schedule A" or "We discovered potential errors in our revenue classification that require consultation with a tax attorney, scheduled for [date]." Bad answers are general statements without supporting details.

Mistake #4: Wrong Return Code or Missing Information

Using the wrong return code (or leaving it blank) can cause processing delays or rejections. Double-check that you're using the correct code for your specific return type. Also, make sure to include your complete EIN or SSN—missing or incorrect identification numbers will cause the IRS to reject your extension request.

Mistake #5: Trying to Extend Form 990-N

Small organizations filing the simple e-postcard (Form 990-N) would sometimes attempt to use Form 8868 to extend that deadline. This isn't allowed—Form 990-N cannot be extended under any circumstances.

Mistake #6: Filing Both Parts Simultaneously

Some organizations would complete both Part I and Part II on the same form, thinking they could secure 6 months of extension time upfront. This doesn't work. You must file Part I first, wait for that extension period, and then file Part II separately if you still need more time.

Mistake #7: Filing After the Deadline

Filing Form 8868 even one day after your original return deadline makes it invalid. The extension request must be received by the IRS by the due date (or extended due date, for Part II). Plan ahead and don't wait until the last minute.

What Happens After You File

For Part I (Automatic Extension)

If you filed correctly and on time, your extension is automatically granted—no confirmation letter needed. The IRS processes your request and assumes you're working under the extended deadline. If you e-filed, you'll receive electronic acknowledgment that your submission was accepted. Keep this acknowledgment with your tax records. You now have until the extended deadline (3 months later, or 6 months for corporate Form 990-T) to file your return.

For Part II (Additional Extension)

Because this extension isn't automatic, the IRS reviews your explanation and makes a determination. If approved, you'll be notified of your new deadline. If denied, you'll receive notice and should file your return immediately to minimize penalties. The IRS typically grants Part II extensions when organizations demonstrate reasonable cause, such as unexpected circumstances beyond their control or legitimate complexity requiring additional professional consultation.

After Filing Your Actual Return

When you eventually file the return that you extended, make sure to indicate on the return that you filed an extension. Most forms have a checkbox or field asking about extensions—checking this box helps the IRS's systems recognize that your return is timely even though it's after the original deadline.

Penalties If You Miss the Extended Deadline

If you fail to file by your extended deadline, penalties kick in. The late filing penalty is 5% of the unpaid tax for each month (or partial month) the return is late, up to a maximum of 25%. For returns filed more than 60 days late, there's a minimum penalty of $100 or the balance of tax due, whichever is smaller. Additionally, organizations that fail to file required returns for three consecutive years can have their tax-exempt status automatically revoked.

Interest Charges

Any tax not paid by the original deadline (not the extended deadline) accrues interest from that date until paid in full. The interest rate fluctuates quarterly and is compounded daily, so even with an approved extension for filing, unpaid taxes continue to grow.

FAQs

Q1: Can I file Form 8868 if my organization doesn't owe any tax?

Yes, absolutely. Even if your organization is fully exempt from income tax and expects to owe nothing, you must still file Form 8868 to extend your filing deadline. On lines 3a-3c (or 8a-8c for Part II), simply enter "$0" or "-0-" in the appropriate boxes. The extension applies to filing the information return itself, not just tax payments.

Q2: What's the difference between the automatic and additional extensions?

The automatic extension (Part I) is granted to anyone who properly files Form 8868 by the original deadline—the IRS must approve it. It gives you 3 extra months (6 for corporate Form 990-T). The additional extension (Part II) gives you another 3 months beyond that, but it's not guaranteed. You must justify why you need the extra time, and the IRS can deny your request if your reasons aren't compelling enough.

Q3: I missed the original filing deadline and didn't file Form 8868. Can I file it now?

Unfortunately, no. Form 8868 must be filed by your original return's due date to be effective. If you've already missed the deadline without filing for an extension, you should file your return as soon as possible to minimize penalties. You can include a statement explaining why you're late and showing reasonable cause, which might help reduce penalties, but the extension opportunity has passed.

Q4: Can I file Form 8868 electronically, and is it faster?

Yes, electronic filing was available for Form 8868 in 2013 (except for Form 8870). E-filing is generally faster, provides immediate confirmation of receipt, and reduces the chance of processing errors. Most tax preparation software and IRS-approved e-file providers support Form 8868. The IRS recommends electronic filing when possible.

Q5: Our organization files a group return for several subordinate organizations. Do we need separate forms for each?

No, you can file one Form 8868 for the entire group. However, you must include a schedule attached to the form listing the name, address, and EIN of every organization covered by the extension request. Enter your Group Exemption Number (GEN) in the designated box on the form. This saves paperwork while still properly identifying all organizations receiving the extension.

Q6: What happens if the IRS denies my Part II (additional extension) request?

If the IRS denies your Part II extension, they'll notify you in writing. At that point, you should file your return immediately, even if it's incomplete or you're still gathering information. Filing a substantially complete return and then amending it later is better than not filing at all. The denial letter may also indicate when your return is now due, which typically includes a brief grace period (usually 10 days) from the date of the denial notice.

Q7: If we're a private foundation filing Form 990-PF, how long can we extend our deadline?

Private foundations follow the same extension rules as other exempt organizations: an automatic 3-month extension via Form 8868 Part I, plus a possible additional 3-month extension via Part II, for a maximum total of 6 months. For a calendar year 2013 return, the original deadline would have been May 15, 2014, the automatic extension would extend it to August 15, 2014, and the maximum extension would be November 17, 2014 (the 15th falls on a Saturday, so the deadline moves to Monday the 17th). 2013 Due Date Table

Sources

Form 8868 (Rev. January 2013)
2013 Instructions for Form 990
2013 Instructions for Form 990-EZ
2013 Instructions for Form 990-PF
Exempt Organization Return Due Dates – Tax Year 2013

This guide is for informational purposes and reflects IRS rules as of the 2013 tax year. Tax laws change over time. For current-year filing, always consult the most recent version of Form 8868 and its instructions, or speak with a qualified tax professional.

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