What the Form Is For

Form 8868 is a simple, one-page application that gives tax-exempt organizations, certain trusts, and related entities additional time to file their annual information returns with the IRS. Think of it as a "permission slip" that buys you more time when you're not ready to file your main return by the deadline.

In 2018, the IRS significantly simplified the extension process. Previously, organizations had to request a 3-month extension first, then apply for an additional 3 months if needed. Starting with the 2018 tax year, Form 8868 now provides an automatic 6-month extension in one simple step—no questions asked, as long as you file the form correctly and pay any taxes you owe by the original deadline.

The form covers a wide range of returns including Form 990 (the main annual information return for most exempt organizations), Form 990-PF (for private foundations), Form 990-T (for unrelated business income tax), and several excise tax returns. It's designed for organizations that need more time to gather financial records, complete audits, or ensure accuracy in their reporting.

When You’d Use Form 8868 (Late/Amended Filing)

You would use Form 8868 before your return's original due date to request extra time. For most calendar-year tax-exempt organizations, Form 990 is due by May 15, 2019 (the 15th day of the 5th month after the tax year ends). If you cannot meet this deadline, you must file Form 8868 by May 15 to secure an automatic extension until November 15, 2019.

Important timing notes

• File Form 8868 by the original due date of the return you're extending. For example, if your organization's fiscal year ended June 30, 2018, your Form 990 is due November 15, 2018, so Form 8868 must be filed by that date.
• The extension is automatic—you don't need IRS approval. As long as you complete the form properly and submit it on time, you're granted the extension.
• You cannot use Form 8868 to extend Form 990-N (the electronic postcard filing for very small organizations with gross receipts of $50,000 or less).

What about late or amended returns? Form 8868 only works before the deadline passes. If you miss the original filing deadline and didn't file an extension, you cannot use Form 8868 retroactively. You must file your late return immediately and may face penalties. For amended returns (correcting a previously filed return), you don't need Form 8868—just file an amended Form 990 marked "Amended Return" anytime within three years of the original filing.

Key Rules for 2018

Several important changes and rules applied to Form 8868 in the 2018 tax year:

1. One-Step, 6-Month Automatic Extension This was the major change. Instead of the old two-step process (3 months automatic + 3 months upon request), Form 8868 now grants a full 6-month extension automatically. This streamlined process eliminates confusion and paperwork.
2. Must Pay Estimated Tax Due An extension to file is not an extension to pay. If your organization owes taxes (such as unrelated business income tax on Form 990-T or excise taxes), you must estimate and pay at least 90% of the total tax liability by the original deadline to avoid late payment penalties. Enter the estimated tax on line 3a of Form 8868, along with any credits and payments on line 3b. If there's a balance due (line 3c), payment must accompany the extension request.
3. Electronic Filing Encouraged (and Sometimes Required) The IRS strongly encourages electronic filing of Form 8868. Starting in 2018, if your organization files 250 or more returns of any type during the calendar year and has total assets of $10 million or more at year-end, you must file Form 990 electronically—and Form 8868 should also be filed electronically. Even if not required, e-filing speeds processing and provides instant confirmation.
4. Separate Form for Each Return You cannot use one Form 8868 to extend multiple return types. If your organization needs to file both Form 990 and Form 990-T, file two separate Forms 8868—one for each return. Each form requires a specific Return Code (01 for Form 990, 07 for Form 990-T corporation, etc.).
5. Special Rules for Group Returns If a central organization files a group return covering multiple subordinate organizations, it can file one Form 8868 for the entire group by entering the Group Exemption Number (GEN) and listing all organizations covered by the extension.
6. No Extension for More Than 6 Months The law limits extensions to 6 months maximum. The IRS cannot grant additional time beyond this period except in extraordinary circumstances (such as natural disasters).

Step-by-Step (High Level)

Filing Form 8868 is straightforward. Here's what you need to do:

Step 1: Gather Basic Information

Collect your organization's legal name, address, and Employer Identification Number (EIN). If you're an individual filer (such as a foundation manager filing Form 4720), use your Social Security Number instead.

Step 2: Determine Your Return Code

Identify which return you're extending and find its corresponding Return Code:

• Return Code 01 = Form 990 or Form 990-EZ
• Return Code 02 = Form 990-BL (black lung benefit trusts)
• Return Code 03 = Form 4720 (individual)
• Return Code 04 = Form 990-PF (private foundations)
• Return Code 07 = Form 990-T (corporation)

Enter this two-digit code in the designated box at the top of Form 8868.

Step 3: Complete Line 1 (Tax Year Information)

Enter the beginning and ending dates of the tax year for which you're requesting the extension. For calendar-year 2018 filers, this would be January 1, 2018, through December 31, 2018. Also indicate your requested extension date—this cannot exceed 6 months from the original due date.

Step 4: Indicate Special Circumstances (Line 2)

If this is an initial return, final return, or you're changing your accounting period, check the appropriate box on line 2.

Step 5: Calculate and Pay Any Tax Due (Lines 3a-3c)

• Line 3a: Enter tentative tax owed minus any nonrefundable credits
• Line 3b: Enter refundable credits and estimated tax payments already made
• Line 3c: Calculate balance due (subtract line 3b from 3a)

If you owe money, you must pay by the original return deadline using the Electronic Federal Tax Payment System (EFTPS) or, for small private foundations owing less than $500, by check.

Step 6: Submit the Form

File electronically through an IRS-approved e-file provider, or mail a paper form to: Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0045

Step 7: Keep Confirmation

If filing electronically, save your confirmation receipt. If mailing, consider using certified mail for proof of timely filing. The extension is automatic, so you won't receive formal approval from the IRS.

Common Mistakes and How to Avoid Them

Mistake #1: Filing After the Deadline

Form 8868 must be filed by the original return due date. Filing it even one day late means you don't get the extension, and your return will be considered late with potential penalties.
Solution: Mark your calendar and file Form 8868 at least a week before the deadline to allow for processing time or mail delays.

Mistake #2: Confusing Extension to File with Extension to Pay

Many organizations mistakenly believe Form 8868 extends the time to pay taxes. It doesn't. You must pay at least 90% of taxes owed by the original deadline to avoid penalties and interest.
Solution: Calculate your estimated tax liability early and make payment when filing Form 8868.

Mistake #3: Using Wrong Return Code

Each return type has a specific code. Using the wrong code can cause processing delays or rejection.
Solution: Double-check the Return Code chart on the form before submitting. If extending multiple returns, file separate forms with the correct code for each.

Mistake #4: Failing to Sign (When Required for Paper Filing)

While Form 8868 itself doesn't require a signature, if you're making a payment by check for a paper-filed form, ensure all payment documentation is complete.
Solution: Review IRS instructions carefully for payment requirements specific to your situation.

Mistake #5: Assuming Extension Applies to All Returns

Some organizations think filing one extension covers everything. An extension for Form 990 doesn't extend Form 990-T or state filings.
Solution: Identify all returns your organization must file and submit separate extension requests where needed, including state-level extensions if your state requires them.

Mistake #6: Not Keeping Records

Organizations sometimes file the extension but don't keep proof, making it difficult to demonstrate timely filing if questioned.
Solution: Save electronic confirmation receipts or certified mail receipts. Keep these with your tax records for at least three years.

Mistake #7: Forgetting About the Extended Deadline

After getting an extension, some organizations lose track of the new deadline and still file late.
Solution: Immediately calendar the extended due date (6 months from the original) and set reminders for one month and two weeks before.

What Happens After You File

Immediate Effect

Once you file Form 8868 correctly and on time, your extension is automatically granted. You don't need to wait for IRS approval or receive any confirmation letter (though e-filing provides instant confirmation of receipt). Your new filing deadline is 6 months after the original due date.

You Have More Time to File—But Responsibilities Continue

During the extension period, continue gathering financial information, completing audits, and preparing your return accurately. Remember, the extension doesn't give you extra time to pay taxes—interest accrues on any unpaid balance from the original due date.

Filing Your Actual Return

When you eventually file your Form 990 or other return during the extension period, you don't need to attach Form 8868 or indicate you filed an extension (unless filing after the original deadline, in which case the extension protects you from late-filing penalties). Simply file your complete return by the extended deadline.

If You Miss Even the Extended Deadline

If you fail to file by the extended due date, the IRS can impose substantial penalties:

• For most organizations: $20 per day the return is late, up to the lesser of $10,000 or 5% of gross receipts
• For large organizations (annual gross receipts exceeding $1,046,500 in 2018): $100 per day, with a maximum penalty of $52,000
• Additional consequences: After three consecutive years of non-filing, the IRS automatically revokes tax-exempt status

Interest and Penalties on Unpaid Taxes

If you didn't pay enough tax with your extension request, the IRS will charge:

• Interest on the unpaid amount from the original due date
• Late payment penalty of 0.5% per month (up to 25% total) on the balance due—though this penalty is waived if you paid at least 90% of the total tax by the original deadline and pay the remainder by the extended deadline

State Filing Requirements

Many states accept federal Form 8868 as an extension for state reporting, but not all. Check with your state charity regulator or attorney general's office to ensure you've met state extension requirements.

FAQs

1. Can I file Form 8868 electronically, or must I mail it?

You can file electronically through IRS-approved e-file providers, and this is the preferred method. Electronic filing provides instant confirmation and faster processing. However, paper filing is still accepted. Mail to: Internal Revenue Service Center, Ogden, UT 84201-0045. Note that Form 8870 extensions must be filed on paper.

2. What if I'm not sure how much tax my organization owes—can I still get an extension?

Yes. Form 8868 requires you to estimate the tentative tax on line 3a. Make your best reasonable estimate based on the information available. If you're uncertain, it's better to overestimate slightly to avoid underpayment penalties. You'll reconcile the actual amount when you file your return.

3. Do I need to explain why I need an extension?

No. The extension is automatic—you don't need to provide any reason or justification. The IRS doesn't evaluate whether your request is valid; as long as the form is properly completed and filed on time, you receive the full 6-month extension.

4. My organization's fiscal year ended June 30, 2018. What year's Form 8868 do I use?

Use the 2018 version of Form 8868. The form year generally corresponds to when the fiscal year ends, not when it begins. Since your fiscal year ended in 2018, the 2018 form is appropriate, even though your filing deadline falls in 2019.

5. We're a small organization that normally files Form 990-N (e-postcard). Can we use Form 8868?

No. Form 990-N filers cannot use Form 8868 because Form 990-N itself is so simple and quick to complete that extensions aren't allowed. However, if you choose to voluntarily file Form 990 or Form 990-EZ instead of Form 990-N, you can then request an extension using Form 8868.

6. What happens if I file Form 8868 but then realize I don't need the extra time?

Nothing negative happens. You can file your actual return anytime after filing the extension request, even if it's before the extended deadline. The extension simply gives you up to 6 additional months—you're not required to use the full period.

7. Can I get more than 6 months if I really need it?

Generally, no. IRS regulations limit extensions to 6 months maximum. The only exceptions are in cases of extreme circumstances like federally declared disasters, military combat zones, or similar extraordinary situations. If you anticipate needing more time, consider whether you might qualify for penalty relief under "reasonable cause" provisions, though this is evaluated after filing, not through an extension.

Sources

Sources: All information in this summary is drawn from official IRS sources, including Form 8868 (Rev. January 2019), Instructions for Form 8868, and Instructions for Form 990 (2018). For the most current information and forms, always visit IRS.gov/Form8868.

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