IRS Form 8868 (2011): Application for Extension of Time to File an Exempt Organization Return
Purpose
Form 8868 (2011) allows exempt organizations to request extensions of time to file annual information returns and certain excise tax forms. Understanding the 2011 revision is critical because it operates under a two-stage extension system with different timeframes depending on the type of return.
For the 2011 tax year, Form 8868 provides an automatic 3-month extension for most exempt organization returns. Corporations required to file Form 990-T receive an automatic 6-month extension instead.
Organizations needing more time may apply for a second, non-automatic 3-month extension. This brings the total possible extension to 6 months for most filers or 9 months for certain 990-T corporate filers.
The 2011 revision introduced updated return codes for Forms 990-T filers. It also clarified tentative tax calculations for organizations subject to unrelated business income tax under post-2010 regulatory guidance.
Filing Steps
Step 1: Determine Your Extension Type and Duration
Before completing Form 8868, determine which extension applies to your organization. Most exempt organizations receive an automatic 3-month extension using Part I. Corporations filing Form 990-T receive an automatic 6-month extension using Part I. Organizations needing additional time use Part II for an additional non-automatic 3-month extension after receiving the initial automatic extension.
You must file a separate Form 8868 for each return type. Extensions do not apply across multiple return types.
Step 2: Complete Organizational Information
Fill out Part I with your organization's complete legal name, taxpayer identification number, and current mailing address. Organizations with foreign addresses must follow the 2011 format rules for non-U.S. locations.
Enter the city, province, or state, and country name without abbreviating the country name. Organizations receiving mail through a third party, such as an accountant or attorney, must enter "C/O" followed by the third party's name and address.
Step 3: Select the Correct Return Code
Verify your organization's exempt status and select the appropriate return code from the 2011 return code table. Enter only one return code per Form 8868.
The 2011 return code system includes the following:
- Code 01 for Form 990
- Code 02 for Form 990-BL
- Code 03 for Form 990-EZ
- Code 04 for Form 990-PF
- Code 05 for Form 990-T (section 401(a) or 408(a) trusts)
- Code 06 for Form 990-T (trusts other than those covered by code 05)
- Code 07 for Form 990-T (corporations)
- Code 08 for Form 1041-A
- Code 09 for Form 4720
- Code 10 for Form 5227
- Code 11 for Form 6069
- Code 12 for Form 8870
The 2011 return code system distinguishes between section 401(a)/408(a) trusts, other trusts, and corporations for Form 990-T filers. This alignment reflects updated UBIT reporting distinctions.
Step 4: Confirm Original Due Date and Extension Deadline
Identify the original return due date for your specific return type under the 2011 tax year rules. The extension deadline you enter on line 1 cannot exceed 3 months from the original due date.
Corporations filing Form 990-T may enter an extension deadline up to 6 months from the original due date. File Form 8868 by the original due date to secure the automatic extension.
Step 5: Calculate Tentative Tax and Payments
Organizations filing Forms 990-BL, 990-PF, 990-T, 4720, or 6069 must complete lines 3a, 3b, and 3c. Complete these lines even if you expect no tax liability.
Calculate tentative tax on line 3a by starting with the total tax liability and reducing it by nonrefundable credits. You must use 2011 tax rates and credit limitations.
Nonrefundable credits may include foreign tax credits for trusts. Enter "-0-" if you expect zero tax.
List all refundable credits and estimated tax payments made during the 2011 tax year on line 3b. Include any prior year overpayment that was applied as a 2011 credit.
Compute the balance due on line 3c by subtracting line 3b from line 3a. You must pay this amount by the original return due date to avoid interest and penalties.
Step 6: Submit Payment if Required
Include payment with Form 8868 if line 3c shows a balance due. The 2011 instructions state that payment should be made if required by using EFTPS.
EFTPS is the preferred and recommended payment method for the 2011 tax year. Private foundations meeting certain conditions could submit checks or money orders payable to the United States Treasury.
Form 8868 extends the time to file your return, but does not extend the time to pay tax. Pay at least 90% of the total tax by the original due date to avoid interest charges and late payment penalties.
Step 7: Complete Special Requirements for Form 5330 Extensions
Organizations requesting an extension for Form 5330 must enter the applicable Internal Revenue Code section imposing the excise tax in Part III. Provide a detailed, specific explanation of why you need additional time to file.
Vague reasons such as "illness" or "practitioner too busy" without adequate detail will not be approved. The IRS evaluates applications based on the organization's efforts to fulfill filing requirements rather than practitioner convenience.
Step 8: Handle Group Return Extensions
Organizations filing group returns must enter the four-digit Group Exemption Number in the designated area and check the appropriate box. Extensions not covering all organizations within the group require an attached schedule.
The schedule must list the name, address, and employer identification number of each organization included in the extension request. This ensures clear documentation of which entities the extension covers.
Step 9: Sign and Date Under Penalties of Perjury
An authorized person must sign Form 8868 under penalties of perjury. Acceptable signers include principal officers of corporate organizations, fiduciaries or trustees, foundation managers, or authorized representatives.
Attorneys or CPAs qualified to practice before the IRS may also sign the form. Designate the person responsible for maintaining the organization's records in Part II and provide their telephone number and fax information.
2011-Specific Updates and Important Notes
Electronic Filing
Effective January 2011, Form 8868 can be filed electronically to request either the Part I automatic extension or the Part II additional extension. Electronic filing is available for all return types except Form 8870.
Form 8870 must be submitted in paper format only to the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0045. This paper-only requirement applies specifically to information returns for transfers associated with certain personal benefits contracts.
Interest and Penalties
Interest accrues on unpaid tax from the original due date until payment is made, even if an extension has been granted. Late payment penalties equal 1% per month up to a maximum of 25% unless you demonstrate reasonable cause.
Organizations granted an extension can avoid late payment penalties by ensuring that at least 90% of the total tax is paid by the original due date. The remaining balance must be paid by the extended deadline.
Extension Does Not Apply to Form 990-N
Form 8868 cannot be used to extend the filing deadline for Form 990-N. Without the option of an extension, small organizations that are required to file Form 990-N must meet the deadline.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
