What Form 8868 (2016) Is For
Tax-exempt organizations use IRS Form 8868 (2016) to request an automatic six-month extension to file their annual information returns or excise taxes related to employee benefit plans. It applies to nonprofits, charities, and other exempt entities that need more time to prepare accurate filings. The form covers returns such as Form 990, Form 990-EZ, Form 990-PF, and Form 990-T.
This version of the form simplified the process by replacing the old two-step system with a single automatic extension. Filing Form 8868 only extends the time to file, not the time to pay any taxes owed. All required tax payments must still be made by the original due date to avoid penalties or interest.
When You’d Use Form 8868
Organizations use Form 8868 when they need more time to file their annual information return, such as Form 990, Form 990-EZ, or Form 990-PF. Filing the form by the original due date—typically May 15 for calendar-year filers—grants an automatic six-month extension to November 15. Fiscal-year organizations follow the same rule, filing by the 15th day of the fifth month following the end of their year.
Form 8868 cannot be used to extend the deadline for Form 990-N (e-Postcard) or to file an amended return. Small organizations that typically file Form 990-N must meet their standard due date or choose to file a longer return type if they wish to request an extension. Filing on time ensures compliance and prevents penalties for late or missed filings.
Key Rules or Details for 2016
Organizations use Form 8868 when they need more time to file their annual information return, such as Form 990, Form 990-EZ, or Form 990-PF. Filing this form by the original due date—typically May 15 for calendar-year filers—automatically grants a six-month extension. The form cannot be used for amended returns or to extend the deadline for Form 990-N (e-Postcard). To remain compliant, all tax payments must still be made by the original due date, even when an extension is approved.
Step-by-Step (High Level)
Step 1: Determine the Original Due Date
Each organization must confirm its filing deadline, typically the 15th day of the fifth month following the end of its fiscal year.
Step 2: Complete Form 8868 Before the Deadline
Enter the organization’s legal name, employer identification number (EIN), and address. Select the appropriate return code for the return being extended, such as Code 01 for Form 990 or Code 04 for Form 990-PF.
Step 3: Indicate the Tax Year
List the beginning and ending dates of the tax year. The new due date will automatically fall six months after the original deadline.
Step 4: Estimate Any Taxes Owed
Complete lines 3a, 3b, and 3c of the form to show tentative tax, credits, and any balance due. If no tax is owed, enter “0” on each line.
Step 5: Make Required Tax Payments
Payments must be submitted using a federal tax payment system such as EFTPS or Direct Pay. Each payment should be scheduled for a specific date, processed within one to two business days, and verified in the taxpayer’s account. Businesses can also use their financial institution or payroll provider to make tax payments.
Step 6: File the Form
Organizations can e-file through an authorized IRS provider or mail a paper copy to the Internal Revenue Service Center in Ogden, Utah. Foreign filers may use the designated P.O. Box in Ogden.
Step 7: File the Actual Return by the Extended Deadline
Once the form is accepted, the extended due date becomes six months after the original filing deadline. During this time, organizations should prepare their tax returns and consult a tax professional for assistance if needed.
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 properly filed, the extension is automatically approved, and the organization’s filing deadline is moved forward six months. The IRS does not issue a confirmation notice; therefore, organizations should retain proof of filing for their records. Interest and penalties still apply if taxes were not paid by the original due date, and interest continues to accrue daily until payment is made. Organizations can monitor their payment history and account activity through EFTPS or their IRS online account to ensure all transactions are processed accurately.
FAQs
Can taxpayers file IRS Form 8868 (2016) electronically?
Yes, taxpayers can file IRS Form 8868 (2016) electronically through the IRS site or an approved e-file provider. This method offers faster processing, secure communications, and confirmation that the form was received and recorded by the Department of the Treasury.
How should organizations make federal tax payments after filing Form 8868?
Federal tax payments must be made by the original due date using an approved federal tax payment system such as EFTPS or Direct Pay. Businesses may also pay through their financial institution, payroll provider, or authorized payment processor. For information on California state tax payment plans, including installment agreements for outstanding tax debt, visit the California Franchise Tax Board website.
What should taxpayers do if they experience issues with EFTPS enrollment or login?
Taxpayers can contact EFTPS customer service agents for help with enrollment, password recovery, or account access. They may also visit the EFTPS site, call the IRS office, or consult a tax professional for step-by-step assistance.
What happens if a scheduled payment fails or is delayed?
If a tax payment is not processed on the scheduled date, taxpayers should contact EFTPS customer service or their financial institution immediately. ACH credit payments may require additional time for settlement, depending on the system used.
Are multifactor authentication and security features required for EFTPS accounts?
Yes, multifactor authentication and secure passwords are required to protect taxpayer identification numbers and personal identification numbers. These measures help safeguard user information when making payments, viewing payment history, or updating EFTPS account details.
Who can assist if taxpayers need help making payments on behalf of their business?
Businesses can consult a tax professional, payroll provider, or financial institution for help with making payments through EFTPS. These experts can review account setup, filing deadlines, and ensure federal tax deposits are completed accurately and on time.
For more resources on filing or understanding IRS forms, visit our Form Summaries and Guides Library.
