A Simple Guide for Tax-Exempt Organizations

Sometimes tax-exempt organizations need more time to file their annual returns with the IRS. Form 8868 is the official document that gives you that breathing room. This guide explains everything you need to know about the 2014 version of this form in plain English.

What the Form Is For

Form 8868 is essentially a "time-out" card for tax-exempt organizations that can't meet their regular filing deadline. If your nonprofit, charity, private foundation, employee benefit trust, or other exempt organization needs extra time to complete and file its annual information return (like Form 990, 990-EZ, 990-PF, or 990-T), this is the form you'll use.

Think of it as asking for a deadline extension from the IRS. The form comes in two parts: Part I grants an automatic 3-month extension (or 6 months for corporations filing Form 990-T), meaning the IRS automatically approves it if you submit it properly and on time. Part II requests an additional 3-month extension beyond the first one, but this second extension isn't automatic—you need to explain why you need more time, and the IRS will decide whether to grant it.

The form is required for various exempt organization returns, including the popular Form 990 (Return of Organization Exempt From Income Tax), Form 990-PF (for private foundations), Form 990-T (for unrelated business income tax), and several others. Each type of return gets its own separate Form 8868—you can't bundle multiple returns under one extension request. IRS.gov

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

When to File for an Extension

You must file Form 8868 by your organization's regular return deadline. For most calendar-year organizations, that means submitting it by May 15th (the 15th day of the 5th month after your accounting period ends). If that date falls on a weekend or holiday, you get until the next business day.

For example, if your organization's fiscal year ended December 31, 2014, your Form 990 would normally be due May 15, 2015. To get extra time, you'd need to submit Form 8868 by that same May 15, 2015 deadline. Missing this deadline means you're filing late—no extension available.

Late Filing Without an Extension

If you miss both your original return deadline AND fail to request an extension, your return is officially late. The IRS can impose penalties of $20 per day (up to $10,000 or 5% of gross receipts, whichever is less). For larger organizations with over $1 million in gross receipts, the penalty jumps to $100 per day, capped at $50,000. These penalties apply even if you don't owe any taxes—it's purely for filing late. IRS.gov

Amended Extensions

Form 8868 cannot be "amended" in the traditional sense. Once you submit it, if you realize you made an error (like entering the wrong EIN or return code), you'll need to file a corrected Form 8868 before your deadline expires. It's better to get it right the first time by double-checking all information before submitting.

Important Note

An extension to file is NOT an extension to pay any taxes owed. If your organization owes excise taxes, unrelated business income tax, or other payments, you must estimate and pay at least 90% of what you owe when you submit Form 8868 to avoid late payment penalties and interest charges. IRS.gov

Key Rules or Details for 2014

Two-Part Structure

Unlike earlier versions, the 2014 form clearly separates automatic (Part I) and non-automatic (Part II) extension requests. You complete only ONE part per filing—never both simultaneously.

Return Codes

Instead of checkboxes, the 2014 form uses a return code system. You must enter the correct two-digit code (01-12) to identify which type of return you're requesting an extension for. For example, code "01" is for Form 990/990-EZ, code "04" is for Form 990-PF, and code "07" is for Form 990-T (corporation). Getting this code wrong can cause processing delays. IRS.gov

Extension Lengths

• Standard automatic extension: 3 months for most returns
• Corporate Form 990-T: 6 months automatic extension
• Additional extension (Part II): Up to 3 more months (total of 6 months maximum for most returns)

Electronic Filing Available

Starting in 2011, the IRS began accepting Form 8868 electronically, and by 2014, e-filing was well-established. You can file electronically through IRS-approved software for both Part I and Part II extensions. However, Form 8870 (a rarely used form) must still be filed on paper. IRS.gov

Payment Requirements

Lines 3a, 3b, and 3c (Part I) or lines 8a, 8b, and 8c (Part II) must be completed by ALL filers, even if you expect zero tax liability. You must calculate your tentative tax, subtract any credits and estimated payments already made, and pay any balance due using EFTPS (Electronic Federal Tax Payment System) or, for small private foundations with balances under $500, by check.

Group Returns

If you're a central organization filing on behalf of multiple subordinates, you must check the Group Exemption Number (GEN) box and attach a list of all organizations covered by the extension if it's not for the entire group.

No Signature Required for Part I

Automatic extensions (Part I) don't need signatures. However, Part II non-automatic extensions require a signed declaration under penalty of perjury. IRS.gov

Step-by-Step (High Level)

For Part I - Automatic 3-Month Extension

Gather Basic Information

Have your organization's legal name, employer identification number (EIN) or social security number (for individuals), mailing address, and the contact person's information ready.

Determine Your Return Type

Identify which return you need extra time to file (Form 990, 990-PF, 990-T, etc.) and find its corresponding Return Code from the table on the form.

Complete the Header Section

Fill in your organization's name, address, EIN/SSN, and enter the Return Code in the designated box. Check the special box if you're a corporation filing Form 990-T requesting a 6-month extension.

Fill in Line 1

Enter the extended due date you're requesting (original due date plus 3 or 6 months). For example, if your return is due May 15, 2015, and you want 3 months, enter August 15, 2015.

Complete Lines 2 and 3

Indicate your tax year dates and check any applicable boxes (initial return, final return, or accounting period change). Calculate your tentative tax (line 3a), estimated payments and credits (line 3b), and balance due (line 3c). Even if all amounts are zero, write "-0-" in each line.

Make Payment if Required

If line 3c shows a balance due, pay it via EFTPS or include a check (for qualifying small foundations only). Write your organization's name, EIN, tax year, and "Form 8868" on the check.

Submit the Form

Mail to Internal Revenue Service Center, Ogden, UT 84201-0027, or file electronically through an IRS-approved provider. Keep a copy for your records.

For Part II - Additional Non-Automatic Extension

Complete Part II ONLY if you've already received the automatic 3-month extension and need more time. The process is similar, but you must provide a detailed explanation on line 7 explaining why you need additional time. "Practitioner too busy" or vague reasons won't work—the IRS needs specific, compelling circumstances beyond your control. You must also sign and date the form under penalty of perjury. IRS.gov

Common Mistakes and How to Avoid Them

Mistake #1: Filing Part I and Part II Together

Many organizations mistakenly complete both parts of Form 8868 simultaneously, thinking they're requesting a full 6-month extension upfront. This doesn't work. You must first file Part I, wait for the automatic 3-month extension period, and only then file Part II if you still need more time. Filing both together will cause the IRS to reject one or both parts.

Mistake #2: Wrong Return Code

Entering "01" when you should enter "07" (or any other code mismatch) is surprisingly common. Double-check the Return Code table on the form and verify you're using the correct two-digit code for your specific return type. An incorrect code can delay processing by weeks or result in denial of your extension.

Mistake #3: Missing the Payment Deadline

Remember: extending your filing deadline does NOT extend your payment deadline. If you owe taxes, you must pay at least 90% of your estimated liability when you file Form 8868, or you'll face late payment penalties (0.5% per month) and interest charges—even if your extension is approved. Calculate carefully using lines 3a-3c or 8a-8c.

Mistake #4: Incomplete Forms

The IRS can reject your extension or impose penalties if you leave required fields blank. This includes lines 3a, 3b, and 3c, which MUST be completed even if your organization is tax-exempt and owes nothing. Write "-0-" in each box to indicate zero amounts rather than leaving them blank.

Mistake #5: Filing Too Late

An extension request filed after your original return deadline is worthless. If your Form 990 is due May 15th, filing Form 8868 on May 16th doesn't give you an extension—you're already late. File early to avoid last-minute mail delays or e-filing technical issues.

Mistake #6: No Reasonable Cause for Part II

When requesting an additional 3-month extension (Part II), providing weak explanations like "we need more time" or "our accountant is busy" typically results in denial. The IRS wants to see genuine obstacles beyond your control: unexpected staff turnover, natural disasters affecting your records, third-party data delays, serious illness, etc. Be specific and honest.

Mistake #7: Filing for Multiple Returns on One Form

Each return type requires its own separate Form 8868. If you need extensions for both Form 990 and Form 990-T, you must file two separate Forms 8868 with their respective return codes. Don't try to bundle multiple extensions on a single form. IRS.gov

What Happens After You File

Automatic Extension (Part I)

If you properly complete and timely file Part I with any required payment, your extension is automatically granted—no confirmation letter needed. The IRS doesn't send you an approval notice; you simply have 3 more months (or 6 months for corporate Form 990-T filers) from your original deadline to file your return.

For example, if your Form 990 was due May 15, 2015, and you filed Form 8868 Part I by that date, your new deadline becomes August 15, 2015. Mark your calendar, because if you miss this extended deadline, penalties apply as if you never requested an extension.

Non-Automatic Extension (Part II)

The additional 3-month extension is NOT automatic. After you submit Part II, the IRS will review your explanation on line 7. If they approve it, they'll send you a letter granting the extension. If they deny it, you'll receive a denial letter explaining why. In case of denial, you should file your return immediately to minimize late-filing penalties.

Approval typically takes 2-4 weeks, so file Part II requests early in your automatic extension period. Don't wait until the last moment—if your request is denied and you haven't filed your return yet, you'll face penalties for every day past your extended deadline.

What You Must Do

Once your extension is granted (automatically or by approval), you're not done. You still must file your complete, accurate return by the extended deadline. An extension only buys you time to file—it doesn't eliminate your filing requirement. If you fail to file by your extended deadline, the IRS will assess late-filing penalties retroactive to your original deadline, as if you never got an extension at all.

Penalties for Missing Extended Deadlines

If you get an extension but still file late, penalties are steep: $20 per day ($100 per day for organizations over $1 million in gross receipts), plus potential penalties against responsible officers ($10 per day per person). These penalties can accumulate quickly, reaching maximum caps of $10,000-$50,000 depending on your organization's size.

Record-Keeping

Keep copies of your filed Form 8868, payment confirmation, and any IRS correspondence for at least 3 years. You'll need these if questions arise during an IRS examination or if you need to prove you met filing requirements for state regulators or grant funders. IRS.gov

FAQs

1. Can I file Form 8868 if I've already missed my original return deadline?

No. Form 8868 must be filed by your organization's original return due date to be valid. If you've already missed your deadline, you cannot get an extension—your return is officially late. File your return as soon as possible and include a written explanation for the delay. The IRS may waive penalties if you can demonstrate reasonable cause, but there's no guarantee.

2. Does an extension to file also extend my time to pay taxes?

No. This is one of the most misunderstood aspects of Form 8868. An extension to file your return does NOT extend your deadline to pay any taxes owed. If your organization has unrelated business income tax, excise taxes, or other liabilities, you must estimate and pay at least 90% of what you owe by your original return deadline. Otherwise, you'll incur late payment penalties (0.5% per month) and interest charges, even if your filing extension is approved.

3. Can I file Form 8868 electronically?

Yes. The 2014 version of Form 8868 can be filed electronically through IRS-approved software providers. Electronic filing is faster, provides instant confirmation, and reduces errors compared to paper filing. Most tax-exempt organizations use e-file for their extensions. However, Form 8870 (a rarely-used form for certain personal benefit contracts) must still be filed on paper and mailed to Ogden, UT. IRS.gov

4. What happens if the IRS denies my Part II non-automatic extension request?

If the IRS determines your explanation for needing additional time isn't sufficient, they'll send you a denial letter. At that point, you should immediately file your return—even if it's incomplete—to stop penalties from accumulating. You can always file an amended return later to correct or add information. The denial letter will explain the reason and advise you on next steps. Common denial reasons include vague explanations, convenience-based requests (e.g., "our accountant was busy"), or requests filed too close to the extended deadline.

5. I'm a small nonprofit with no tax liability. Do I still need to complete the payment lines?

Yes. Even if your organization is fully tax-exempt and has zero tax liability, you must complete lines 3a, 3b, and 3c (Part I) or lines 8a, 8b, and 8c (Part II). Simply enter "-0-" in each line to indicate zero amounts. Leaving these lines blank can cause the IRS to reject your extension request or impose penalties for filing an incomplete form.

6. Can I request more than 6 months total extension time?

No. Under IRS rules for 2014, the maximum extension period is 6 months total: an automatic 3 months (Part I) plus an additional 3 months if approved (Part II). There are no exceptions—even in extraordinary circumstances, you cannot get more than 6 months beyond your original deadline. Plan accordingly and use your extended time wisely. IRS.gov

7. We're a central organization filing a group return. How does Form 8868 work for us?

If you're filing a group return covering multiple subordinate organizations under a group exemption letter, you can file a single Form 8868 for the entire group or for specific subordinates. Check the box for group returns, enter your four-digit Group Exemption Number (GEN), and attach a list showing the names and EINs of all subordinate organizations covered by this extension request. Each subordinate included in the extension request should NOT file its own separate Form 8868 for that year—doing so creates confusion and processing delays.

Resources

All information in this guide is sourced from official IRS publications available at IRS.gov:

• Form 8868 (Rev. January 2014)
• 2014 Instructions for Form 990
• IRS Exempt Organizations resources
• For the most current forms and guidance, visit IRS.gov or call the IRS Tax Exempt Organizations helpline at 1-877-829-5500 (Monday-Friday).

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