What Form 8868 (2018) Is For
IRS Form 8868 (2018), Application for Extension of Time to File an Exempt Organization Return, allows tax-exempt organizations and certain trusts to request additional time to file their annual information returns with the Internal Revenue Service. This one-page extension form grants an automatic 6-month extension when submitted correctly by the original due date of the organization’s tax return.
Exempt organizations that file Form 990, 990-EZ, 990-PF, or 990-T use Form 8868 when they need extra time to complete records, audits, or financial statements. The 2018 version simplified the process—organizations no longer need to file for two separate 3-month extensions. Instead, they can request an automatic 6-month extension in a single step.
For a detailed breakdown of filing requirements, eligibility rules, and step-by-step instructions, see our comprehensive IRS Form 8868 (2018): Late & Amended Filing Guide.
When You’d Use Form 8868
Organizations use Form 8868 when they need additional time to file their annual information return with the IRS. It provides an automatic six-month extension for most tax-exempt organizations, including charities, foundations, and trusts. This form is handy when financial statements, audits, or other required documents are not ready by the original filing deadline.
Key Rules or Details for 2018
1. Automatic 6-Month Extension
The 2018 tax year introduced a single 6-month automatic extension for all qualifying returns. No explanation or approval is required.
2. Extension to File Is Not an Extension to Pay
Organizations must estimate and pay at least 90 percent of the tentative tax due by the original deadline. Interest and penalties apply to any unpaid balance.
3. Electronic Filing Encouraged
The IRS strongly encourages electronic filing through approved providers. Large organizations with 250 or more returns and assets of $10 million or more are required to e-file Form 8868. Electronic filing provides immediate confirmation of receipt.
4. Separate Form for Each Return
Only one return code may be used per Form 8868. If an organization files multiple returns (for example, Form 990 and Form 990-T), it must submit a separate extension form for each return.
5. Special Rules for Group Returns
A central organization filing a group return for its subordinates can submit a single Form 8868, accompanied by its Group Exemption Number and a list of covered entities.
6. Maximum 6 Months Only
The law does not allow extensions beyond six months except in rare cases, such as disaster relief or combat zone service.
For complete details on wage reporting, withholdings, and unemployment tax filings, see our guide for Nonprofit & Exempt Organization Forms.
Step-by-Step (High Level)
Step 1: Gather Information
Collect the organization’s legal name, address, and Employer Identification Number. If a trustee or individual files Form 4720, use a Social Security Number instead.
Step 2: Identify the Return Code
Each return type requires a specific code entered at the top of Form 8868:
- 01 = Form 990 or 990-EZ
- 02 = Form 990-BL
- 03 = Form 4720 (Individual)
- 04 = Form 990-PF
- 07 = Form 990-T (Corporation)
Step 3: Enter Tax Year Information
Provide the beginning and ending dates of the tax year. For calendar year 2018, this is January 1, 2018, through December 31, 2018.
Step 4: Indicate Special Circumstances
Check the box if the return is initial, final, or reflects a change in accounting period.
Step 5: Estimate and Pay Tentative Tax
Complete Lines 3a through 3c to show the tentative tax reduced by nonrefundable credits and refundable credits. Any outstanding balance must be paid when requesting an extension.
Step 6: Submit the Form
File electronically through an IRS-approved e-file provider or mail the paper format to:
Department of the Treasury**
**Internal Revenue Service Center
Ogden, UT 84201-0045
Step 7: Keep Records
Save the confirmation receipt or certified mail proof for your records. Maintain records with other tax documents for at least three years.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Filing after the deadline: Organizations should submit Form 8868 by the original due date because late filings automatically void the extension and may trigger penalties.
- Confusing a filing extension with a payment extension: Organizations must pay all taxes by the original due date since Form 8868 delays only the filing deadline.
- Using the wrong return code: Organizations should verify the correct return code before filing to prevent delays or rejection by the IRS.
- Not keeping proof of submission: Organizations should save electronic confirmations or mailing receipts to verify timely filing if requested by the IRS.
- Assuming one extension covers all returns: Organizations must file separate extensions for each federal or state return to ensure full compliance.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
After filing Form 8868, the IRS reviews the submission to confirm that it was completed accurately and received before the original due date. If approved, the organization will automatically receive an extension notice, granting additional time to file its return. However, the extension does not postpone any tax payments; penalties or interest may still apply to unpaid balances.
FAQs
Can taxpayers file an exempt organization return using IRS Form 8868 (2018)?
Yes, IRS Form 8868 (2018) allows tax-exempt organizations and certain trusts to request an automatic 6-month extension of time to file an exempt organization return. This extension form must be submitted before the original due date of the tax return.
Does Form 8868 extend the time to pay taxes owed by an exempt organization?
No, the extension only applies to the time to file the organization’s tax return, not to paying taxes. Exempt organizations must pay at least 90% of their estimated balance due by the original due date to avoid interest and penalties.
How does electronic filing work for IRS Form 8868?
Electronic filing is encouraged by the Internal Revenue Service. Organizations can submit the form through an approved e-file provider. E-filing ensures faster processing, fewer filing errors, and confirmation that the return or extension was successfully filed.
What should organizations know about return codes and tentative tax?
Only one return code can be used per filing form. Organizations must calculate the tentative tax reduced by nonrefundable and refundable credits. The payment of this tentative tax must accompany the request for an automatic extension to file.
Can nonprofit groups or trusts use paper format when filing Form 8868?
Yes, while electronic filing is preferred, nonprofit groups and trusts required to file Form 8868 may submit it in paper format by mailing it to the Department of the Treasury. Paper submissions should include full balance payments and complete taxpayer information.
Where can taxpayers find additional information or download the form?
Taxpayers can visit the IRS website to download IRS Form 8868 (2018) and related instructions. The site offers free access to forms, updated due dates, and details about the filing process for tax-exempt organizations, including information return requirements and payment guidance.
