Form 8868 (Rev. January 2017)—2016 Tax Year
Extension Checklist
Purpose
Form 8868 requests an automatic 6-month extension of time to file exempt organization returns for the 2016 tax year. The January 2017 revision consolidated the previous two-step process (a 3-month automatic extension followed by a 3-month request) into a single 6-month automatic extension. File a separate form for each return type using the Return Code system.
Completion Steps
Step 1: Enter Organization Name and Identifying Number
Enter the exempt organization’s legal name exactly as registered with the IRS for the 2016 tax year. Exempt organizations (corporations, foundations, trusts) must enter their federal employer identification number (EIN). Individuals filing Form 4720 or certain other returns must enter their social security number (SSN) only. Complete only one identification box—not both.
Step 2: Select the Appropriate Return Code
Identify the specific return form requiring an extension and enter the corresponding Return Code in the designated box. Enter only one code per form. Common codes include 01 for Form 990/990-EZ, 04 for Form 990-PF, and 07 for Form 990-T (corporation). File separate Form 8868 applications for each return type your organization is required to file in 2016.
Step 3: Provide Complete Mailing Address and Contact Information
Include the street address (with suite or room number if applicable), city, state, and ZIP code where the organization receives mail. For foreign addresses, enter the city, province, state, and country name in full. Include the telephone and fax numbers for the person responsible for maintaining the books and records. Note that a new address on Form 8868 does not update your IRS record—file Form 8822 separately for address changes.
Step 4: Indicate Group Return Status (If Applicable)
If filing for a central organization’s group return, enter the four-digit Group Exemption Number (GEN) on the designated line. Check the appropriate box to indicate whether the extension covers the entire group or only part of it. For partial-group extensions, attach a schedule listing the name, address, and EIN of each member organization included in the extension request.
Step 5: Complete Line 1 with the Extended Due Date
Enter the date to which you request the extension—up to 6 months from the original due date of the 2016 return. Indicate whether the return covers a calendar year 2016 or a fiscal year by entering the beginning and ending dates. The automatic 6-month extension is granted if you file this form and pay any balance due by the original return due date.
Step 6: Check Line 2 If Tax Year Is Less Than 12 Months
If the 2016 tax year covers fewer than 12 months, check the appropriate box indicating whether this is an initial return, final return, or change in accounting period. For changes in accounting period, confirm that you have obtained IRS approval via Form 1128 or meet the exceptions outlined in Publication 538.
Step 7: Calculate Tentative Tax on Line 3a
Enter the tentative tax for 2016, reduced by any nonrefundable credits applicable to your return type (such as foreign tax credits). All filers must complete lines 3a, 3b, and 3c, even if the organization is fully tax-exempt or expects zero liability. If the amount is zero, enter -0- on line 3a.
Step 8: Enter Payments and Credits on Line 3b
For returns that allow it (Form 990-PF, 990-T, 4720, or 6069), enter any refundable credits and estimated tax payments made during the 2016 tax year. Include any prior year overpayment allowed as a credit. For other return types where line 3b does not apply, enter -0- if required by the form’s specific instructions.
Step 9: Calculate Balance Due on Line 3c
Subtract line 3b from line 3a to determine the balance due. If the result is zero or negative, enter -0-. If a balance exists, you must pay the full amount by the original return due date to avoid interest and penalties. The extension applies only to filing the return—not to paying the tax.
Step 10: Arrange Payment by the Original Due Date
Form 8868 extends only the filing deadline, not the payment deadline. All 2016 tax liabilities must be paid by the original return due date using the Electronic Federal Tax Payment System (EFTPS). Exception: Small private foundations with a 2016 tentative tax under $500 may submit payment by check or money order with Form 8868. All other organizations must use EFTPS or arrange electronic payment through a tax professional, financial institution, or other authorized third party.
Step 11: File the Original Form Without Copies
Submit only the original completed Form 8868—no photocopies are needed. File the extension form separately by the original return due date. Do not attach Form 8868 to your actual 2016 return when you file it later. Exception: Form 8870 (Information Return for Transfers Associated With Certain Personal Benefit Contracts) extensions must be sent in paper format only, as electronic filing is not available for this form.
Step 12: Verify That No Signature Is Required
Form 8868 does not require a signature. Ensure all the necessary fields are completed accurately, verify that the balance due calculation on line 3c is correct, and arrange payment separately from filing the form.
Year-Specific IRS Updates and Changes
6-Month Automatic Extension Replaces Two-Step Process
The January 2017 revision (applicable to 2016 returns) consolidated the previous system into a single 6-month automatic extension. Previously, filers received an automatic 3-month extension and could request an additional 3-month extension. Now, file once by the original due date to receive the full 6-month extension automatically.
Return Code System Replaces Checkbox Selection
The 2016 form introduces a Return Code system with numeric codes 01 through 12 instead of checkbox selection. Filers must identify the correct return type by entering the appropriate Return Code number in the designated box. Only one code is allowed per form.
Three-Year Non-Filing Rule for Automatic Revocation
The 2016 instructions clarify that if an exempt organization fails to file the required Form 990 series return (including any extended due date granted by Form 8868) for three consecutive years, its tax-exempt status is automatically revoked effective as of the original filing due date of the third year’s missed return.
As long as you file Form 8868 by your organization’s original filing due date and then file the return by the extended due date, exempt status will not be automatically revoked during the extension period. Note that Form 8868 cannot be used to extend the due date of Form 990-N (e-Postcard).
Electronic Payment Requirement via EFTPS
The 2016 instructions emphasize that tax-exempt organizations must make federal tax deposits electronically through EFTPS. The only exception applies to small private foundations: those with tentative tax under $500 may submit payment by check or money order payable to the United States Treasury with Form 8868. Write the fiscal or calendar year, “Form 8868,” and the foundation’s name, address, and EIN on the check or money order. All other organizations must use EFTPS or arrange electronic payment through authorized third parties.
Electronic Filing Available for Most Forms
You can electronically file Form 8868 for all return types except Form 8870. For Form 8870, extension requests must be sent in paper format to the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0045. Electronic filing is encouraged for all other eligible forms and can be completed through approved IRS e-file providers.
Important Reminders
Extension Covers Filing Only, Not Payment
The 6-month extension applies solely to the filing deadline. Any tax owed for 2016 must be paid by the original return due date. Interest accrues on unpaid amounts from the original due date, regardless of the filing extension. Late payment penalties may also apply if you cannot demonstrate reasonable cause.
File Separately for Each Return Type
Organizations that require multiple return types must file separate Form 8868 applications for each return type. For example, if your organization is required to file both Form 990 and Form 990-T, submit two separate extension forms, each with the appropriate Return Code.
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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.
