What IRS Form 8868 (2014) Is For
IRS Form 8868 (2014) provides an official extension of time to file when an exempt organization cannot meet its federal return deadline. Most nonprofits use this extension form to request an automatic extension, which provides additional time to file without affecting their tax-exempt status. The federal extension applies only to filing returns; it does not extend the time to pay any tax owed for the tax year. Organizations file this IRS form to prevent late-filing penalties while preparing accurate returns.
For more details on nonprofit IRS forms and filing extensions, visit our IRS Form Help Center.
When You’d Use IRS Form 8868 (2014)
Organizations use this extension of time form when they require additional time to complete and file a required federal return.
- Missing required documents: Your organization requests the tax extension when essential financial records or operational documents cannot be prepared before the original deadline.
- Accountant preparation delays: Your organization uses the extension when the accountant responsible for preparing the return requires more time to complete the filing for the tax year.
- Complex transactions: Your organization files the extension form when complex or unusual financial activities require additional review before finalizing the return.
- Multiple filing obligations: Your exempt organization uses the extension when it must file more than one federal return and needs more time to complete each filing accurately.
- Donor and asset reporting delays: Your nonprofit requests extra time when the verification of donor information or asset records cannot be completed before the required filing date.
If your organization receives a penalty for late filing, you may qualify for penalty abatement depending on your circumstances.
Key Rules or Details for the 2014 Tax Year
Several IRS requirements govern the operation of IRS Form 8868 (2014) for exempt organizations.
- Automatic 3-month extension: Most nonprofits receive an automatic extension when they submit a complete form and pay any required balance by the original due date.
- Automatic 6-month extension for Form 990-T: Corporations filing Form 990-T receive an automatic 6-month extension when they file Part I correctly.
- Separate filing for each return: An organization must file a separate extension request for each return to ensure the IRS applies the extension to the correct filing.
- Estimate and pay balance due: An organization must estimate its tax liability for the tax year and pay at least 90 percent of the balance to avoid interest and penalties.
- Correct return code requirement: An organization must enter the proper return code so the IRS can apply the extension to the correct return and tax year.
- Group exemption rules: A central organization may request an extension for multiple nonprofits when it includes the required list of all covered organizations.
You can confirm your organization’s IRS extension and filing history with our IRS Account Transcript Service.
Step-by-Step (High Level)
Filing this federal extension follows a clear and organized sequence of steps.
- Gather organization information: This means entering the organization's name, address, EIN, and tax year details so the IRS can match the extension to the correct entity.
- Calculate tentative tax: This means you estimate the tentative tax, subtract allowable credits, and determine whether a balance must be paid with the extension.
- Choose a payment method: This means you pay the balance through EFTPS or mail a check when allowed, and you maintain documentation to support your filing in future consecutive years.
- Complete Part I to receive the automatic extension: This means you must complete Part I and ensure the information is accurate before submitting.
- Submit before the original due date: This means you submit the form before the original deadline so the IRS applies the federal extension to the correct return.
- File Part II only when additional months are needed: This means you file Part II when more time is required, and you include a written explanation for IRS review.
Common Mistakes and How to Avoid Them
Organizations often encounter preventable issues when filing IRS Form 8868 (2014), and each mistake requires an explicit corrective action to ensure compliance.
- Confusing extension to file with extension to pay: This mistake is avoided when the organization estimates its tax for the tax year and pays the required balance by the original due date.
- Skipping Part I and filing Part II first: This mistake is avoided when the organization completes Part I before submitting any request for additional months through Part II.
- Using one extension for multiple returns: This mistake is avoided when the organization files a separate extension form for each federal return that must be submitted.
- Providing vague explanations in Part II: This mistake is avoided when the organization prepares a detailed and specific explanation that adequately supports the request for additional time.
- Missing the filing deadline: This mistake is avoided when the organization submits the extension of time request on or before the original deadline.
- Entering incorrect return codes: This mistake is avoided when the organization verifies that the return code accurately corresponds to the return being extended.
What Happens After You File
A properly completed IRS Form 8868 (2014) results in an automatic extension that provides additional time to file your organization’s federal return. The IRS does not issue formal approval for Part I extensions; however, the organization must still pay attention to interest on any unpaid tax and penalties for late payments. When the IRS reviews a Part II request, it issues a notice of approval or denial, and the organization must file promptly once the extended deadline is set.
FAQs
What does this extension form do for an exempt organization?
This extension form provides additional time for an exempt organization to file its required federal return without affecting its tax-exempt status. It delays the filing deadline but does not delay the payment of any taxes owed, and it helps organizations avoid late filing penalties.
Does IRS Form 8868 (2014) provide a tax extension for tax-exempt status requirements?
IRS Form 8868 offers a tax extension for filing deadlines only and does not extend or modify the organization’s tax-exempt status. The status remains unchanged while the organization prepares the required return, but any balance due must still be paid by the original due date.
When should an exempt organization submit this extension form to the IRS?
An exempt organization must submit the extension form by the original filing deadline for its return. Filing on time allows the IRS to recognize the request and apply the extension properly, ensuring that the organization avoids unnecessary penalties.
Can an exempt organization request more than one tax extension for the same tax year?
An exempt organization may request additional time by filing Part II after receiving the automatic extension from Part I. The IRS reviews the explanation submitted with Part II to determine whether additional months will be granted for the same tax year.
What happens if the organization does not file after receiving the extension form?
If the organization fails to file by the extended deadline, the IRS imposes penalties based on the type of return and the time elapsed. The organization may request penalty abatement, but approval is not guaranteed, so filing by the extended date remains essential.
