What the Form Is For

Form 8868 is the IRS form that tax-exempt organizations and certain trusts use to request extra time to file their annual returns. Think of it as asking for a homework extension—but for your nonprofit's tax paperwork. If your organization wasn't ready to file on time (maybe your accountant needed more time, or you were still gathering financial information), Form 8868 lets you request additional time without immediately triggering penalties.

For the 2012 tax year, this form covered a wide range of returns that exempt organizations might file, including:

• Form 990 (annual information return for most tax-exempt organizations)
• Form 990-EZ (shorter version for smaller organizations)
• Form 990-PF (for private foundations)
• Form 990-T (for reporting unrelated business income tax)
• Form 4720 (excise taxes on charities)
• Form 5227 (split-interest trusts)
• Various other specialized returns

The form is also used by trustees of certain trusts required to file Form 1041-A or Form 5227. Importantly, Form 8868 only extends the time to file your return—it does NOT extend the time to pay any taxes you owe. If you owe taxes, you still need to estimate and pay them with this extension request to avoid penalties and interest. IRS.gov

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

Original Extension Filing

You would file Form 8868 by your organization's original return due date. For most calendar-year exempt organizations filing Form 990, 990-EZ, or 990-PF for 2012, the original due date was May 15, 2013. You needed to submit Form 8868 by that date to get an automatic extension.

Two-Stage Extension System in 2012

Unlike today's streamlined process, the 2012 version of Form 8868 had a two-part extension system:

• Part I: Automatic 3-Month Extension (6 months for corporations filing Form 990-T) – This was granted automatically if you properly completed the form and paid any estimated taxes due. No explanation was required.
• Part II: Additional 3-Month Extension (not automatic) – If you already had the first extension but still needed more time, you could request an additional 3 months. This required completing Part II, providing a detailed explanation of why you needed extra time, and having an authorized person sign the form. The IRS had to approve this second extension.

Important Limitation

You couldn't request both extensions simultaneously. You had to receive your first automatic extension before applying for the additional time. The maximum total extension was 6 months from your original due date. IRS.gov

Amended Returns

Form 8868 is NOT used for amended returns. If you need to correct a return after filing it, you would file a new, corrected version of the original return (such as an amended Form 990) with "Amended Return" clearly marked—but you wouldn't use Form 8868 for that purpose.

Note on Form 990-N

Form 8868 could NOT be used to extend the filing deadline for Form 990-N (the e-Postcard filed by very small organizations). That form had no extension option in 2012.

Key Rules or Details for 2012

Extension Lengths

• Most exempt organization returns (Forms 990, 990-EZ, 990-PF, 990-BL, etc.): Automatic 3-month extension, plus possible additional 3 months (total: up to 6 months)
• Form 990-T filed by corporations: Automatic 6-month extension (no need for additional extension)
• Form 990-T filed by trusts (other than 401(a) or 408(a) retirement trusts): Automatic 3-month extension, plus possible additional 3 months
• Form 990-T for section 401(a) or 408(a) trusts: Similar two-stage system

Payment Requirements

Even though you're extending the filing deadline, you must estimate and pay at least 90% of the tax due by the original deadline to avoid penalties. Any unpaid balance will accrue interest from the original due date until paid. If you pay less than 90% with your extension, you may face a late payment penalty of 1% per month on the unpaid amount (up to 25% maximum). IRS.gov

Electronic Filing

Beginning in 2011, Form 8868 could be filed electronically for both the automatic extension (Part I) and the additional extension (Part II). However, Form 8870 (Information Return for Transfers Associated With Certain Personal Benefit Contracts) had to be filed on paper.

Separate Forms Required

You must file a separate Form 8868 for each return type. For example, if your organization needs to file both Form 990 and Form 990-T, you need two separate extension requests.

Group Returns

A central organization filing a group return could file one Form 8868 for the entire group, but had to attach a list showing the name, address, and employer identification number (EIN) of each organization included in the extension request.

No Blanket Extensions

An extension for one return doesn't cover related returns. For instance, getting an extension for Form 990-PF doesn't automatically extend Form 4720 if you have excise tax liabilities.

Step-by-Step (High Level)

Step 1: Determine Which Extension You Need

First, decide whether you're requesting the initial automatic extension (Part I) or the additional non-automatic extension (Part II). If you haven't filed an extension yet, start with Part I. Don't complete both parts on the same form.

Step 2: Gather Essential Information

Collect your organization's basic information:

• Official legal name
• EIN (Employer Identification Number) or SSN if filing as an individual
• Complete mailing address
• Return code for the specific form you're extending (e.g., Code 01 for Form 990)
• Tax year dates
• Contact person's name and phone number

Step 3: Calculate Any Tax Due

This is critical: If your return includes tax liability (Forms 990-T, 990-PF, 990-BL, 4720, or 6069), you must:

• Estimate your tentative tax (Line 3a for Part I or Line 8a for Part II)
• Subtract any refundable credits and estimated payments already made (Line 3b or 8b)
• Calculate the balance due (Line 3c or 8c)
• Include payment for any balance due with your extension request using EFTPS (Electronic Federal Tax Payment System) or following the specific payment instructions.

Step 4: Complete the Appropriate Section

For Part I (Automatic Extension)

• Fill in the header information (name, EIN, address, return code)
• Enter the extended date on Line 1 (3 or 6 months from your original due date)
• Complete Lines 2 and 3 regarding your tax year and any payments
• No signature is required for Part I

For Part II (Additional Extension)

• Fill in the header information
• Enter the extended date on Line 4 (up to 6 months total from original due date)
• On Line 7, provide a detailed explanation of why you need additional time—this is crucial and must be specific and compelling
• Complete Lines 8a, 8b, and 8c regarding taxes and payments
• Have an authorized officer or representative sign and date the form

Step 5: Submit by the Deadline

File Form 8868 by:

• Your original return due date (for Part I automatic extension)
• Your first extended due date (for Part II additional extension)

Submit electronically through approved e-file providers or mail the paper form to:
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0045

Step 6: Keep Records

Retain a copy of your filed Form 8868 with proof of submission date (electronic confirmation or certified mail receipt) in case the IRS questions your filing timeline. IRS.gov

Common Mistakes and How to Avoid Them

Mistake #1: Filing Late

Many organizations missed the deadline by confusing "extension to file" with "extra time to request an extension."
How to Avoid: File Form 8868 before your original return due date expires, not after. Mark your calendar well in advance.

Mistake #2: Not Paying Estimated Taxes

Some organizations thought requesting an extension meant they didn't have to pay taxes until later.
How to Avoid: Remember that Form 8868 only extends the time to file paperwork—not the time to pay taxes. Estimate your tax liability and pay at least 90% with your extension to avoid penalties.

Mistake #3: Submitting Both Parts Simultaneously

Filing Part I and Part II together confused the system and resulted in rejection.
How to Avoid: File Part I first, wait to receive it, then file Part II only if you genuinely need more time beyond the initial extension.

Mistake #4: Providing Vague Explanations for Part II

Writing "need more time" or "accountant busy" on Line 7 often resulted in denial of the additional extension.
How to Avoid: Be specific and detailed. Explain circumstances beyond your control, such as: "Our financial records were delayed due to a bank merger requiring extensive reconciliation of 15 years of historical data" rather than simply "records delayed."

Mistake #5: Using the Wrong Return Code

Some organizations checked the wrong box or return code, creating processing delays.
How to Avoid: Carefully verify the return code for your specific form. Code 01 is for Form 990/990-EZ, Code 04 is for Form 990-PF, Code 07 is for Form 990-T (corporation), etc.

Mistake #6: Forgetting Signatures for Part II

The additional extension (Part II) requires a signature from an authorized officer, but many submitted unsigned forms.
How to Avoid: Have your authorized representative (principal officer, trustee, or someone with power of attorney) sign and date Part II before submission. Part I doesn't require a signature.

Mistake #7: Filing Form 8868 for Form 990-N

Small organizations filing the e-Postcard (990-N) incorrectly attempted to extend that deadline.
How to Avoid: Remember that Form 990-N cannot be extended using Form 8868 or any other method. IRS.gov

What Happens After You File

For Part I (Automatic Extension)

If you properly completed Form 8868 Part I, filed it by the original due date, and paid any required taxes, your extension was automatically granted—no approval letter needed. The IRS generally didn't send confirmation unless there was a problem. You could assume your extension was approved if you filed correctly and on time.

Your new deadline became 3 months later (or 6 months for corporate Form 990-T filers). For example, if your Form 990 was originally due May 15, 2013, your extended deadline would be August 15, 2013.

For Part II (Additional Extension)

This was NOT automatic. The IRS reviewed your explanation on Line 7 and decided whether to approve or deny your request. The IRS considered:

• Whether your reasons were legitimate and beyond your control
• Your organization's filing history
• The adequacy and specificity of your explanation
• Whether you demonstrated reasonable effort to complete the return

Approval Process

The IRS typically responded within a few weeks, though organizations were advised to file Part II early to allow time for a response. If approved, you received additional time (usually bringing your total extension to 6 months from the original due date). If denied, you had only the 10-day grace period from the original extended due date to file.

If Denied

The IRS would notify you of the denial. You would need to file your return immediately to minimize penalties. The agency might deny requests if it determined your explanation was inadequate, your reasons were based on convenience rather than necessity, or you provided false information.

Penalties After Extension

Even with an approved extension:

• Late payment penalties (1% per month, up to 25%) apply if you didn't pay at least 90% of taxes due by the original deadline
• Interest accrues on unpaid taxes from the original due date
• Late filing penalties (5% per month, up to 25%) apply if you miss your extended deadline

The late filing and late payment penalties don't stack completely—if both apply simultaneously, the late filing penalty is reduced by the late payment penalty amount.

After Your Extended Deadline

Once you filed your actual return by the extended deadline, the IRS processed it normally. Your extension request simply prevented late filing penalties, assuming you met all requirements. IRS.gov

FAQs

Q1: Can I file Form 8868 after my original deadline has passed?

No. Form 8868 must be filed by your organization's original return due date to be valid. If you miss that deadline, file your return as soon as possible and include a statement explaining your reasonable cause for late filing to potentially avoid or reduce penalties.

Q2: Do I need to file Form 8868 if my organization doesn't owe any taxes?

Yes, if you need more time to file your return. Even tax-exempt organizations without tax liability must file annual information returns (like Form 990) on time or request an extension. You'll enter "-0-" on the tax-related lines, but you still need to submit the extension request.

Q3: Can I get more than 6 months total extension time?

No. For 2012 returns, the maximum extension was 6 months from the original due date. The IRS strictly enforced this limit. Organizations that needed more time had limited options beyond the 6-month maximum.

Q4: What if I file Form 8868 electronically—do I get instant confirmation?

Generally yes. Electronic filing provided an acknowledgment that your extension was submitted and accepted. This served as proof of timely filing. Paper filers should consider using certified mail with return receipt to prove their submission date.

Q5: If I'm filing a group return, do I need separate extensions for each member organization?

No. A central organization could file one Form 8868 for the entire group, but needed to check the group return box, enter the Group Exemption Number (GEN), and attach a list identifying all organizations covered by the extension (unless the extension covered the entire group).

Q6: What counts as a "reasonable cause" for needing the additional 3-month extension (Part II)?

Reasonable causes included: unexpected loss of key personnel who maintained financial records, natural disasters affecting the organization's location, complex transactions requiring additional time for proper reporting, or significant unforeseen legal issues requiring resolution before filing. General reasons like "too busy" or "accountant scheduling" typically weren't sufficient.

Q7: If I file Form 8868 for Form 990, does it also extend related forms like Form 990-T?

No. Each return type requires its own separate Form 8868. Getting an extension for your Form 990 doesn't automatically extend Form 990-T (unrelated business income tax return) or any other related returns—you need to file separate extension requests for each.

Source: All information in this summary is based on official IRS documents for the 2012 tax year, including Form 8868 (Rev. January 2012) and its instructions, available at IRS.gov.

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