What Form 8868 Is For
Form 8868 (2022) allows tax-exempt organizations and nonprofit groups to request an automatic extension of up to six months to file their annual exempt organization return with the Internal Revenue Service. The extension form applies to charities, private foundations, and governmental entities. It gives additional time to complete audits, gather organization details, and review financial records before filing. However, the extension does not delay any required tax or estimated tax payments due by the original date.
When You’d Use Form 8868 (2022)
Tax-exempt organizations typically file Form 8868 when they cannot complete their organization’s tax return by the original due date. For most calendar-year filers, the due date is May 15, and the automatic extension moves the deadline to November 15. Organizations that operate under a fiscal tax year must calculate six months from when the tax year ends. The Internal Revenue Service requires that you file Form 8868 on or before the original due date. Late filing penalties apply if the form is submitted after this date, and no complimentary extension requests are available.
Key Rules or Details for 2022
- Automatic extension approval: The Internal Revenue Service grants an automatic six-month extension if the form is completed correctly and filed by the original due date.
- Tentative tax requirement: Organizations must report the tentative tax reduced by nonrefundable and refundable credits. This ensures any tax liability is calculated before requesting the extension.
- Payment and electronic funds withdrawal: You must pay taxes due using electronic funds withdrawal or the Electronic Federal Tax Payment System. Paying by the due date helps avoid interest.
- Separate form for each return: If your organization files multiple tax forms, such as Form 990 and Form 4720, you must file a separate Form 8868 for each return type.
- Return code entry: Only one return code applies to each filing. The code identifies which exempt organization return you are extending, such as 01 for Form 990 or 04 for Form 990-PF.
- Electronic filing option: The IRS recommends e-filing Form 8868 for faster processing. Once the form is accepted, e-file submissions receive immediate confirmation.
- Paper filing option: Paper format is allowed. Completed forms should be mailed to the Internal Revenue Service at the Department of the Treasury, IRS Center, Ogden, UT 84201-0045.
- Group return rules: Central organizations can file an extension for group returns by entering the Group Exemption Number and attaching a list of all member organizations.
- Form approval date: The 2022 version of this form was approved under the Internal Revenue Code section governing exempt organizations.
- Record retention: Keep all proof of submission, whether electronic or paper filing, as the IRS may review documentation during an audit.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
Step 1: Gather organization details
Collect your nonprofit organization’s legal name, taxpayer identification number, mailing address, and accounting period information. Accurate details help ensure your form is approved without delay.
Step 2: Identify the correct return code
Locate the return code that matches your exempt organization return type. For example, Return Code 01 applies to Form 990, while Return Code 05 covers trust filings. Enter only one return code on the extension form.
Step 3: Calculate your extended due date
Determine the new deadline by adding six months to your original due date. If your fiscal tax year ends December 31, the latest filing date becomes November 15.
Step 4: Complete tax information
Enter your tentative tax, nonrefundable credits, and refundable credits. Completing these lines is required for a valid extension even if no taxes are owed.
Step 5: Pay any tax due
If you owe a balance, pay through electronic funds withdrawal or EFTPS by the original due date. Paying ensures you avoid interest or late filing penalties.
Step 6: File the form
The IRS recommends electronic filing for speed and accuracy. E-file Form 8868 through an approved provider. Paper filing remains an option for those preferring mail submission.
Step 7: Retain confirmation
After you file, save your confirmation or proof of mailing. If your filing is rejected, retransmit rejected returns promptly to maintain your automatic extension status.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Filing late: Many exempt organizations miss deadlines. File Form 8868 before the original due date and set reminders to avoid late filing penalties.
- Assuming payment is extended: The extension only delays filing, not payment. Pay taxes by the original due date to avoid interest or additional charges.
- Omitting tax calculations: Leaving lines blank makes your form incomplete. Enter zero where applicable and verify all amounts before submitting to the IRS.
- Using one form for multiple returns: Each organization’s tax return needs Form 8868. File a separate form to ensure every extension is accepted.
- Ignoring rejected filings: Some e-filing form submissions are rejected. Correct errors quickly and retransmit rejected returns to keep your automatic extension valid.
- Incorrect return code: Entering more than one return code causes delays. Review the IRS instructions carefully and use only one return code per form.
- Failure to maintain records: Many organizations lose proof of filing. Keep confirmations, payments, and receipts as helpful resources for audits or future requests.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
The extension becomes effective immediately once you file an exempt organization return extension through electronic or paper filing. The Internal Revenue Service does not send formal approval notices, but your e-file confirmation or mail receipt serves as proof. If your form is accepted, your new due date will be six months after your original deadline. Missing that extended date triggers late filing penalties and interest on unpaid taxes. Always store your documentation, as the audit function may review your organization's details or prior filings.
FAQs
Can I e-file Form 8868 for free with the Internal Revenue Service?
Yes, the IRS offers several approved providers that allow nonprofit organizations to e-file Form 8868 without additional cost and provide immediate confirmation once the form is accepted.
What return code should I use when I file an exempt organization return?
Use only one return code per submission. For example, Code 01 is for Form 990 or 990-EZ, while Code 04 applies to private foundations using Form 990-PF.
How can electronic filing help nonprofit groups avoid late filing penalties?
Electronic filing provides faster confirmation and ensures the IRS receives the form before the due date. It helps nonprofit groups avoid delays caused by mailing issues.
What happens if I choose paper filing instead of e-filing Form 8868?
You can file your extension form on paper if you prefer a physical submission. The Internal Revenue Service mail center in Ogden, Utah, provides the above address.
How do I retransmit rejected returns after my e-filing Form 8868 submission fails?
If the e-file system rejects your electronic filing, retransmit the rejected returns immediately. The IRS recommends fixing errors quickly to keep your automatic extension active.
Where can I find helpful resources for filing my organization’s tax return?
Helpful resources include the Internal Revenue Service website, IRS-approved e-file providers, and guidance from a qualified tax professional familiar with tax-exempt organizations.
For more resources on filing or understanding prior-year IRS forms, visit our guide on Business Income Tax Forms.
