IRS Form 8868 (2019): Extension of Time To File an EOR

What IRS Form 8868 (2019) Is For

Tax-exempt organizations use IRS Form 8868 (2019) to request an automatic extension of time to file their annual exempt organization return. This form provides a six-month extension for returns such as Form 990, Form 990-EZ, Form 990-PF, and others. It is beneficial for nonprofit organizations that need more time to compile financial data or finalize records before their return due date. The extension applies only to the return filing itself for the applicable tax year and does not delay any tax payments due.

For a step-by-step overview of nonprofit IRS extension forms and exempt organization requirements, visit our IRS Form Help Center.

When You’d Use IRS Form 8868 (2019)

This extension form is used in situations where an exempt organization needs additional time to file.

1. Need more time to prepare financial information: This applies when organizations need additional time to gather records, reconcile accounts, or confirm donations so the annual return can be completed accurately.
   
   
2. Pending decisions from board members: This applies when board members must review financial statements or approve final details that affect the exempt organization's return.
   
   
3. Transitioning between forms for the current return: This applies when an organization moves from Form 990-N to Form 990 or 990-EZ and requires additional time to prepare the correct form.
   
   
4. Multiple filings across the organization: This applies when an organization must file separate extensions for forms such as Form 990 and Form 990-T.
   
   
5. Needing extra time due to funding or administrative delays: This applies when staffing issues, donor documentation, or accounting delays make it difficult to submit the return by the original due date.

To confirm your IRS extension or review your organization’s official records, use our IRS Account Transcript Service.

Key Rules or Details for the 2019 Tax Year

Several rules apply when an organization files IRS Form 8868 for an extension of time.

• The extension provides an automatic 6-month extension of time. Most nonprofits receive additional time to file the exempt organization return, as long as the extension request is submitted by the original deadline.
  
  
• The extension does not extend time to pay taxes owed: The organization must estimate and pay its balance by the original due date to avoid interest and penalties.
  
  
• A separate extension form must be filed for each required return: Organizations must file Form 8868 individually for Form 990, Form 990-PF, Form 990-T, or other required filings.
  
  
• The extension protects tax-exempt status (during extension period): Filing on time prevents automatic revocation for missing returns for three consecutive years.
  
  
• The IRS receives the extension form by the original deadline. The extension is only granted when the extension form is submitted on time and includes the required information, such as tax estimates.

Step-by-Step Filing Process (High Level)

The filing process for IRS Form 8868 (2019) follows a series of steps that must be completed accurately.

1. Determine the original due date based on the organization’s tax year: The organization must identify the deadline tied to its fiscal year or calendar tax year so the extension can be submitted on time.
   
   
2. Gather the required information for the extension: This includes the name, address, EIN, tax year dates, return code, and any tax estimates owed for the current return.
   
   
3. Calculate the tentative tax, payments, and balance: Organizations must estimate tax owed and show all payments made so the IRS can review the extension form correctly.
   
   
4. Choose the filing method: Most organizations e-file the request through secure IRS-approved software. Paper forms can be mailed, but they should be sent early.
   
   
5. Make any required payments before the original deadline: Payments should be sent electronically and should cover at least 90 percent of the tax estimate to avoid penalties and interest.
   
   
6. Retain proof of submission: Organizations should save e-file confirmations or certified mail receipts as part of their records of compliance.

Common Mistakes and How to Avoid Them

Nonprofit organizations often encounter predictable issues when they file Form 8868, but these errors can be avoided.

• Assuming the extension is granted: Avoid this by paying all estimated taxes by the original deadline so that penalties and interest do not apply.
  
  
• Submitting the extension after the due date: Avoid this by confirming the deadline based on your organization’s tax year and filing the extension form early.
  
  
• Leaving tax estimate lines incomplete: Avoid this by entering "$0" on all required lines when no tax is owed to ensure the form is processed correctly.
  
  
• Using one form to extend multiple returns: Avoid this by filing a separate extension form for every return the organization must file for the tax year.
  
  
• Failing to file the actual return after receiving extra time: Avoid this by tracking the extended deadline and setting calendar reminders to ensure timely filing.

What Happens After You File

After you file IRS Form 8868, the IRS either grants the extension automatically or flags an issue if one exists. If the form is filed, you will receive an electronic confirmation to retain with your records. If mailed, you will not receive a response unless the form is incomplete. The extension only applies to filing; therefore, any unpaid taxes will continue to accrue interest and penalties from the original due date. Organizations should use the extension period to review their documents, finalize the return, and submit it by the new deadline.

Need help with IRS extensions or keeping your nonprofit in good standing? Start your case review and let our experts assist your organization.

FAQs

Does IRS Form 8868 extend the time to pay taxes?

No, IRS Form 8868 only extends the deadline for filing your return; it does not extend the time to pay any taxes owed. Payments must be made by the original due date to avoid penalties and interest.

Can a nonprofit file IRS Form 8868 after the deadline passes?

No, the IRS will not honor late extension requests. Form 8868 must be submitted by the original return deadline; otherwise, the return is considered late.

Is a separate extension required for Form 990 and Form 990-T?

Yes, each return requires its own IRS Form 8868. Filing one extension does not automatically apply to other returns, even if they are for the same organization.

What happens if a nonprofit misses the extended deadline?

Failing to meet the extended deadline may result in late filing penalties. More critically, failure to file for three consecutive years could result in the automatic revocation of tax-exempt status.

Does the automatic extension protect tax-exempt status?

Yes, if the extension is filed on time and the return is submitted by the extended deadline, the organization’s tax-exempt status remains protected during the extension period.

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