What Form 8868 (2025) Is For
Form 8868 (2025) helps tax-exempt organizations request an automatic extension to file their annual exempt organization return with the Internal Revenue Service. The extension provides up to six months to prepare accurate financial information, review personal benefit contracts, and complete all tax forms. The extension form applies to income tax and excise taxes related to employee benefit plans, but does not extend the time to pay taxes owed.
When You’d Use Form 8868 (2025)
Exempt organizations use IRS Form 8868 when they are unable to meet their original filing due date. Organizations often require additional time to finalize financial records, verify estimated tax payments, or gather any missing data for their tax year. Filing before the original deadline ensures the automatic extension is valid. The Internal Revenue Service offers mail and e-filing options, although the IRS recommends e-filing for accuracy and speed.
Key Rules or Details for 2025
- Automatic approval: The Internal Revenue Service automatically approves properly completed requests, allowing exempt organizations extra time to file Form 8868 without requiring confirmation.
- Form 5330 exception: Organizations filing for excise taxes related to employee benefit plans must wait for IRS review and cannot assume automatic extension approval.
- Payment requirement: The extension applies to filing only; organizations must still pay taxes and report estimated tax payments by the original due date to avoid late-filing penalties.
- Separate form rule: Each organization’s tax return requires its extension form, and individual extensions must be filed for multiple returns under the Internal Revenue Code.
- Electronic filing option: The IRS recommends e-filing Form 8868 using approved software, as electronic filing ensures faster acknowledgment and accurate processing for all tax-exempt organizations.
- Governmental entities: Certain governmental entities making elective payment elections under excise taxes must include the proper return code and follow electronic funds withdrawal procedures when submitting payment.
- Mailing address accuracy: Organizations using paper filing must send their forms to the correct Internal Revenue Service mail address listed for their region to ensure timely receipt.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
Step 1: Gather Required Information
Collect your organization’s legal name, employer identification number, mailing address, fiscal tax year-end date, and the specific exempt organization return you plan to extend. Confirm any tax liability and calculate estimated tax payments before filing.
Step 2: Complete the Identification Section
Provide your organization’s name and EIN as registered with the Internal Revenue Service. Select the correct return code to indicate the type of exempt organization return you are extending, and review all fields carefully for accuracy before proceeding.
Step 3: File Form 8868 Electronically or by Mail
If preferred, choose to e-file IRS Form 8868 through an approved provider or use a paper filing. Electronic filing allows faster confirmation and supports secure payment through electronic funds withdrawal. Paper submissions should be sent to the IRS Ogden processing center.
Step 4: Confirm and Track Your Extension
After submission, keep copies of your filed extension form, electronic acknowledgment, and any payments made. Mark your calendar for the extended due date to ensure your organization’s tax return is filed on time.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Filing after the deadline: Always submit your extension before the original due date, as the Internal Revenue Service will not accept late filings.
- Assuming payment is extended: Filing the extension does not delay your obligation to pay taxes; pay estimated tax payments by the original deadline to prevent penalties.
- Using incorrect return codes: Verify that your return code matches your exempt organization return type to avoid delays in processing by tax professionals or the IRS.
- Forgetting separate filings: To comply with the Internal Revenue Code, organizations filing multiple returns must do so separately.
- Missing attachments for group filings: Central organizations should include complete member lists when submitting a group extension request to ensure all entities are covered.
- Ignoring address changes: To prevent lost IRS notices or returned correspondence, update your official mailing address using Form 8822-B before submitting it.
- Overlooking the revocation rule: Failure to file for three consecutive tax years can cause automatic loss of tax-exempt status. Ensure that your exempt organization return is submitted before the extended deadline.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File Form 8868 (2025)
Once you e-file Form 8868 or submit it through paper filing, your organization’s extension becomes effective immediately if completed correctly. No separate approval is required for most returns. However, organizations submitting Form 5330 for excise taxes related to employee benefit plans must await formal IRS approval. Interest will continue to accrue on unpaid tax liability after the original due date. Filing through electronic systems ensures quick confirmation and fewer processing delays.
FAQs
Can tax-exempt organizations file Form 8868 after missing the due date?
No, to file an exempt organization return correctly, tax-exempt organizations must submit Form 8868 before the original due date. Filing late does not extend the deadline, and late filing penalties may apply under the Internal Revenue Code.
Does filing Form 8868 extend the time to pay taxes?
No, filing Form 8868 only provides extra time to file an exempt organization return. You can make estimated tax payments by the penalty due date to avoid penalties.
Can I e-file IRS Form 8868 instead of mailing it?
The IRS recommends e-filing because it provides faster confirmation and fewer errors. Electronic filing also allows electronic funds withdrawal for tax payments, making it the preferred method.
Who should file Form 5330 for excise taxes related to employee benefit plans?
Organizations responsible for certain excise taxes related to employee benefit plans must file Form 5330. They can request additional time by submitting Form 8868, along with the required explanations, for IRS review and consideration.
How can I confirm my automatic extension for tax-exempt organizations?
You can confirm an automatic extension by receiving the e-filing acknowledgment from your electronic submission system. Paper filers can track confirmation through the Internal Revenue Service delivery records.
What should governmental entities include when requesting an extension?
Governmental entities making elective payment elections must file Form 8868 using the proper return code, reporting estimated tax payments, and providing complete income tax details.
What happens if my organization fails to e-file Form 8868 for three years?
If your organization fails to file Form 8868 electronically or submit returns for three consecutive tax years, the Internal Revenue Service will automatically revoke its tax-exempt status.
For more resources on filing or understanding prior-year IRS forms, visit our guide on Business Income Tax Forms.
