What Form 8868 (2020) Is For
IRS Form 8868 (2020), issued by the Internal Revenue Service, allows tax-exempt organizations, including nonprofit organizations, charitable organizations, private foundations, and churches, to request additional time to file their annual tax returns. Officially titled Application for Extension of Time to File an Exempt Organization Return, the form provides an automatic six-month extension to help organizations avoid penalties and ensure accurate financial reporting.
Any organization that cannot meet its original due date for Form 990, 990-EZ, 990-PF, 990-T, or similar returns should use this extension form. It extends only the time to file, not the time to pay any federal tax due. Payment must still be made by the original due date to avoid interest or penalties.
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, trusts, and foundations. This form is handy when financial statements, audits, or required documents are not finalized by the original due date. Filing on time ensures the organization remains compliant and avoids unnecessary penalties.
Key Rules or Details for 2020
For the 2020 tax year, Form 8868 allowed most tax-exempt organizations to request an automatic six-month extension to file their annual returns. The form had to be filed by the original due date of the return, not after that date. Organizations were required to pay any estimated taxes by that date to avoid penalties and interest. Each return type needed its own Form 8868, and electronic filing was encouraged for faster processing.
Step-by-Step (High Level)
The filing process for Form 8868 is straightforward when completed carefully.
Step 1: Gather Necessary Information
The organization should collect its legal name, address, Employer Identification Number (EIN), beginning and ending tax year dates, estimated income tax liability, and any payments already made.
Step 2: Complete the Header Section
Enter the organization’s identifying information, contact person, and accounting details accurately.
Step 3: Select the Correct Return Code
Use the table on Form 8868 to identify the code for the specific return being extended.
Step 4: Fill In Lines 1 Through 3
Indicate the new extended due date, select the appropriate boxes for an initial or final return, and calculate any tentative balance owing.
Step 5: Submit Any Required Payment
Make payments electronically through EFTPS or by check if eligible. Include the organization’s EIN, the words “Form 8868,” and the tax year on the payment.
Step 6: File the Completed Form
File electronically through the IRS e-file system whenever possible. If mailing, send it to:
Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0045
Step 7: Keep Proof of Filing
Retain electronic confirmations or certified mail receipts as proof of timely submission.
Common Mistakes and How to Avoid Them
- Filing after the original due date: The IRS does not accept late Form 8868 submissions; organizations should file early to ensure processing before the deadline.
- Assuming the extension covers payment: The extension only applies to filing, not payment. Taxes must be paid by the original due date to avoid penalties and interest.
- Using one form for multiple returns: Each return type requires its own Form 8868 with the correct return code for accurate processing.
- Entering the wrong return code: Selecting the incorrect code can delay or reject the request; always verify the code before submission.
- Trying to extend Form 990-N: The e-Postcard (Form 990-N) is not eligible for extension using Form 8868.
- Providing incomplete or inaccurate information: Double-check all entries for accuracy to prevent delays or rejection.
- Failing to retain proof of filing: Keep electronic or mailed confirmation as evidence of timely submission in case of IRS inquiries.
A careful review, timely filing, and accurate documentation ensure that Form 8868 is accepted and processed without issues.
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 an organization files Form 8868 correctly, the Internal Revenue Service automatically grants a six-month extension without requiring separate approval. Electronic filers receive immediate confirmation through the IRS system, while paper filers should keep mailing receipts. The new due date is six months after the original deadline, and no second extension is available. Filing by the extended deadline helps organizations avoid penalties and maintain full compliance with federal tax requirements.
FAQs
What is IRS Form 8868 (2020) and why is it important for tax-exempt organizations?
IRS Form 8868 (2020) is an extension form from the Internal Revenue Service that allows tax-exempt organizations, charitable organizations, and nonprofit organizations to request extra time to file their annual tax return. It ensures compliance with federal tax procedures and prevents penalties during the tax season.
Who should file the extension form for nonprofit organizations?
Nonprofit organizations, private foundations, private schools, and churches that cannot meet their due date should file this extension form. It enables organizations to collect accurate tax information, manage contributions and grants, and accurately report income tax to the relevant government authorities.
Does filing IRS Form 8868 (2020) extend the time to pay taxes?
The extension form only extends the time to file a tax return, not to pay taxes. All taxpayers must pay any income tax or federal tax owed by the original date to maintain their tax-exempt status and avoid penalties from the Internal Revenue Service.
What information must organizations provide when filing the form?
Organizations must provide their legal name, address, Employer Identification Number, tax year, and details about taxes paid or owed. This helps the IRS process the request and verify exemption details for nonprofit organizations and charitable programs.
Can private foundations and charitable organizations file late tax returns?
Private foundations, charitable organizations, and other nonprofits are not eligible to use Form 8868 for late filing. The Internal Revenue Service requires that the form be filed before the original due date to qualify for an extension and avoid federal penalties.
How does e-filing improve the process for tax-exempt organizations?
E-filing through the IRS system offers faster approval, reduces mailing delays, and provides confirmation of receipt. It ensures secure submission of tax information and financial data for organizations, donors, and trustees managing charitable funds.
Why should organizations consult a tax professional before filing?
A tax professional can help organizations complete the extension form accurately, determine eligibility for exemption, and ensure compliance with Internal Revenue Service procedures. Expert guidance reduces errors, improves reporting, and helps preserve federal tax benefits for nonprofit organizations.
For more resources on filing or understanding other IRS forms, visit our Form Summaries and Guides Library.
