What Form 8868 (2017) Is For
The Internal Revenue Service issues IRS Form 8868 (2017) for tax-exempt organizations that need more time to file their annual exempt organization return. It allows charities, trusts, and other nonprofit entities to request an automatic six-month extension of time to file without incurring late penalties.
This 2017 version introduced a simplified process by replacing the old two-step system with a single automatic extension. This change provided charitable organizations, foundations, and other exempt entities with additional time to prepare accurate financial statements, finalize audit reviews, and gather supporting documentation before filing their tax returns.
When You’d Use Form 8868
Form 8868 is used when a tax-exempt organization needs more time to file its annual return, such as Form 990, 990-EZ, or 990-PF. The form must be filed by the original due date, which is typically the 15th day of the fifth month following the organization’s tax year-end. Filing Form 8868 grants an automatic six-month extension to submit the full return, allowing additional time to compile accurate tax information and financial statements.
This form only extends the time to file, not the time to pay any income tax owed. Organizations that expect to owe federal tax must make estimated tax payments of at least 90 percent of their liability by the original due date. Failure to pay can result in interest and penalties, and not filing for three consecutive years may cause the IRS to revoke the organization’s exemption status.
Key Rules or Details for 2017
The 2017 version of Form 8868 introduced a single automatic six-month extension, replacing the previous two-step system. The Internal Revenue Service encouraged electronic filing for faster processing and fewer errors, though paper filing through the Department of the Treasury remained available. Each return type, such as Form 990, 990-EZ, or 990-PF, required its own two-digit return code to ensure accurate processing.
Organizations that owed federal tax were required to make estimated tax payments using the Electronic Federal Tax Payment System. Private foundations with less than $500 in investment income tax could mail a check or money order. The form was applied separately to each exempt organization return and did not extend the time to pay any income tax due.
Step-by-Step (High Level)
A tax-exempt organization should follow these basic steps when completing Form 8868:
- Determine whether the organization can complete its return by the original due date. If not, prepare to file Form 8868 before that date.
- Identify the correct return type and code to include on the form. Each tax form, such as Form 990 or 990-PF, uses a specific two-digit code.
- Gather all required tax information, including the organization’s legal name, address, Employer Identification Number (EIN), and the name of the individual maintaining the books.
- Calculate the estimated tax payments and refundable credits on Lines 3a through 3c. Even if no tax is owed, enter “-0-” on each line.
- Arrange for payment of any balance due through EFTPS or mail payment with the form if allowed.
- Electronically file Form 8868 or mail it to the IRS Service Center in Ogden, Utah, by the original due date of the return.
- Keep confirmation records for proof of timely filing. Electronic filing provides immediate confirmation, whereas paper filers should use certified mail for tracking purposes.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Assuming the extension covers tax payments: Form 8868 only extends the time to file, not the time to pay; taxes must be paid by the original due date using EFTPS, Direct Pay, or another approved federal payment method.
- Filing one form for multiple return types: Each type of return requires its own Form 8868 with the correct return code to ensure proper processing.
- Submitting after the original deadline: Even a one-day delay voids the extension; organizations should schedule filings ahead of time to meet IRS deadlines.
- Failing to file the return after receiving the extension: The organization must still file its annual return within the six-month extension period to remain compliant.
- Leaving lines 3a through 3c blank: These sections must be completed accurately, even if no taxes are owed, to avoid processing issues or rejection.
Careful preparation, timely filing, and attention to detail help ensure Form 8868 is accepted and processed smoothly by the IRS.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
Once Form 8868 is filed, the Internal Revenue Service automatically grants a six-month extension if the form is complete and submitted by the due date. Organizations that electronically file receive confirmation immediately, while paper filers should maintain proof of mailing. The extension only applies to filing, not payment, so any unpaid federal tax balance continues to accrue interest and possible penalties. During the extension period, organizations should verify all financial information to ensure an accurate exempt organization return is filed.
FAQs
What is IRS Form 8868 (2017) used for?
IRS Form 8868 (2017) gives tax-exempt organizations more time to file their annual exempt organization return. It provides an automatic six-month extension of time to file with the Internal Revenue Service when additional tax information is needed.
Who should file Form 8868?
Charitable organizations, churches, trusts, and corporations that qualify as tax-exempt organizations under federal law use this form to request an extension of time to file their tax return. Taxpayers must submit it by the original due date of their return.
Does Form 8868 extend the time to pay income tax?
No, the extension only grants more time to file, not to pay. Any federal tax liability must be paid in full or through estimated tax payments by the original date to avoid penalties and interest charges from the IRS.
Can organizations electronically file Form 8868?
Yes, electronic filing (e-filing) is encouraged because it offers faster processing and confirmation from the Internal Revenue Service. Organizations may also mail paper forms to the Department of the Treasury address listed on the instructions page.
What tax information is needed to complete Form 8868?
Filers must include the organization’s name, EIN, address, trustee information (if required), and financial details, such as estimated tax payments, refundable credits, and any balance due. All entries should be accurate and complete to avoid processing delays.
What happens if an organization fails to file on time after receiving an extension?
Failure to file the final return after the extension period expires may result in penalties and loss of exemption status. Interest and fines can accrue on unpaid funds until the organization pays its federal tax liability in full.
Are there benefits to using electronic filing providers?
Yes, authorized IRS providers assist tax-exempt organizations in accurately and securely filing Form 8868 electronically. This process reduces errors, confirms submission instantly, and helps maintain proper records on behalf of organizations and their trustees.
For more resources on filing or understanding other IRS forms, visit our Form Summaries and Guides Library.
