What Form 8868 (2024) Is For
Exempt organizations use Form 8868 to request an automatic extension of time to file an exempt organization return. The Internal Revenue Service grants six extra months to file Form 990, 990-EZ, 990-PF, or other forms tied to excise taxes related to employee benefit plans. Nonprofit organizations use it when they cannot meet the original due date. The extension form covers filing but not payment, so taxes owed must still be paid on time.
When You’d Use Form 8868 (2024)
Organizations file Form 8868 when more time is needed to prepare accurate returns. It helps groups waiting for donor reports, financial statements, or audit function results. The due date generally falls on the fifteenth day of the fifth month after a fiscal tax year ends. Filing before that date ensures the automatic extension is approved. The Internal Revenue Service mail or e-filing form option can be used, though the IRS recommends e-filing.
Key Rules or Details for 2024
- Automatic approval: If the exempt organization files before the original due date, the Internal Revenue Service automatically grants an approved extension without requiring further explanation or documentation.
- Separate form for each return: Each exempt organization return must have its own Form 8868. The IRS does not allow one extension form to cover multiple returns.
- No payment extension: The extension only grants extra time to file an exempt organization return. All taxes must still be paid by the original due date.
- Electronic filing required for most: The IRS recommends e-filing because it provides faster confirmation, reduces common submission errors, and allows taxpayers to retransmit rejected returns easily.
- Include the correct return code: Organizations must include only one return code to identify which exempt return, such as Form 990 or Form 990-PF, is being extended.
- Tentative tax reporting: Organizations must report tentative tax and estimated tax payments accurately to ensure correct tax liability and to prevent acceptance delays or processing errors.
- Governmental entities’ inclusion: Governmental entities filing excise taxes related to employee benefit plans must continue using the elective payment election section on the 2024 version of Form 8868.
- Maintain organization details: Each filing must include the taxpayer identification number, accounting period, and organization details accurately to avoid delays or rejected extensions.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
Step 1: Determine your due date
Confirm the due date for your organization’s tax return. The date falls on the fifteenth day of the fifth month following the end of your fiscal tax year.
Step 2: Gather organization details
Collect your organization’s legal name, taxpayer identification number, return code, estimated tax payments, and accounting period. Tax professionals recommend reviewing your tentative tax return to avoid mistakes.
Step 3: Complete and review the form
Fill out the IRS Form 8868 accurately with organization details and income tax estimates. Verify that all lines are filled, especially the return tax-related boxes.
Step 4: Pay taxes by the original due date
Calculate and pay taxes owed to avoid late filing penalties. Payments can be made using electronic funds withdrawal or other Internal Revenue Service payment options.
Step 5: Choose your filing method
Use electronic filing for speed and reliability. Organizations unable to e-file Form 8868 can file paper through the Internal Revenue Service mail.
Step 6: File by the deadline
Submit the completed form and confirm that it was accepted. Keep documentation in your records to show an approved extension if questions arise during an audit function review.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Filing after the deadline: Submitting the form late voids the automatic extension. To avoid this, file Form 8868 several business days before the due date.
- Assuming payment is delayed: The extension only applies to the exempt organization return, not to taxes owed. Pay all balances by the original due date.
- Incorrect return code: Entering the wrong return code can cause rejection. Always double-check the organization’s exempt return type before submitting.
- Incomplete organization details: Missing taxpayer identification numbers or income tax entries delay processing. Review all the required information carefully before filing.
- Using one form for multiple returns: Each organization must submit a separate form for each exempt organization return.
- Relying on paper filing: Federal holiday schedules can delay paper filing. To avoid this, use electronic filing whenever possible.
- Ignoring the 5330 rule: Forms related to excise taxes on employee benefit plans may need additional IRS approval. File early if your return involves these taxes.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
Once the Internal Revenue Service receives your submission, most organizations automatically gain six additional months to complete their tax returns. The IRS sends no formal approval notice for accepted extensions. Organizations using paper filing may experience longer processing times. E-filing provides faster confirmation and allows users to retransmit rejected returns. If taxes owed remain unpaid, interest accrues from the original due date. Filing correctly ensures your tax-exempt status remains active and avoids unnecessary penalties.
FAQs
Can tax-exempt organizations e-file Form 8868?
The Internal Revenue Service recommends electronic filing because it speeds up processing, ensures the form is accepted, and allows resubmission if errors occur.
Does IRS Form 8868 extend the time to pay taxes owed?
The automatic extension only provides extra time to file an exempt organization return. Taxes owed must be paid by the original due date.
Can I use one extension form for multiple exempt organization returns?
No, each organization’s tax return requires a separate form. Filing one form for several group return filings violates the IRS filing process rules.
How does paper filing compare to e-filing Form 8868?
Paper filing can take longer and is more prone to mailing delays. The IRS recommends e-filing to ensure faster processing and reduce late filing penalties.
What happens if the return code is missing on my extension form?
Missing or incorrect return code entries can cause rejection. To avoid this, verify your form includes only one return code that matches your exempt return type.
Do excise taxes related to employee benefit plans require extra approval?
Yes, Form 5330 filers must wait for IRS review. These excise tax-related filings are not automatically approved and should be submitted well before the deadline.
Where can I find helpful resources for filing Form 8868?
Helpful resources are available on IRS.gov. Tax professionals can also assist with form completion, electronic filing setup, and verifying compliance under the Internal Revenue Code.
For more resources on filing or understanding prior-year IRS forms, visit our guide on Business Income Tax Forms.
