What IRS Form 8868 (2022) Is For
IRS Form 8868 (2022) is the extension form that tax-exempt organizations use when they need additional time to file their annual tax form with the IRS. The form provides an automatic extension for exempt organizations, nonprofit groups, and private foundations that file Form 990, Form 990-EZ, or Form 990-PF. It grants extra time to file without requiring an explanation; however, it does not extend the time to pay any taxes owed. This filing option helps nonprofit tax filing remain accurate and compliant.
For more guidance on IRS nonprofit extension forms and accurate tax filings, visit our IRS Form Help Center.
When You’d Use IRS Form 8868 (2022)
This section outlines the situations in which organizations are required to file Form 8868.
- Missed upcoming filing date: Organizations file Form 8868 when they cannot complete their original nonprofit tax forms by the due date and require an automatic extension of time for the applicable tax year.
- Need extra time for internal audit check: Organizations submit this extension form when an internal audit check requires additional time to complete an accurate nonprofit tax filing for the fiscal tax year.
- Filing multiple exempt organization returns: Organizations file separate extension requests when they must extend more than one exempt organization return, such as a Form 990 and a Form 4720, for the same filing period.
- Expecting delays with tax professionals: Organizations file Form 8868 when their tax professionals anticipate delays in preparing or reviewing the required nonprofit tax return.
Key Rules or Details for the 2022 Tax Year
These key rules outline how IRS Form 8868 (2022) applies to exempt organizations.
- One automatic 6-month extension: IRS Form 8868 (2022) provides a single automatic 6-month extension for each tax form, and organizations cannot extend the same return beyond this time.
- Extension covers filing time only: IRS Form 8868 extends only the time to file the return, and it does not extend the deadline to pay any taxes owed for the tax year.
- Separate filing for each form: Each required tax form, such as Form 990 or Form 990 PF, requires its own extension submission because the IRS does not accept a single request for multiple filings.
- Mandatory correct organization details: Forms are accepted only when organization details are accurate, which means incomplete or incorrect information may result in rejected returns for the 2022 tax year.
- E-filing or paper-filing options: Organizations may choose between electronic filing and paper filing for Form 8868. Paper filing requires mailing the form to the Internal Revenue Service Center for processing.
Step-by-Step (High Level)
The following steps outline how to complete and file Form 8868.
- Gather organization information: The filer collects the organization's details, the applicable tax year information, and the return codes for the following forms, such as Form 990, Form 990-EZ, or Form 990-PF, before completing the extension request.
- Calculate tentative tax: The filer estimates any taxes owed for the tax year and ensures that at least 90 percent of applicable taxes are paid by the original deadline to avoid penalties.
- Prepare the extension request: The filer completes the extension form by entering accurate financial data and verifies the entries through an internal audit or audit function to reduce the likelihood of rejected returns.
- Submit electronically or by mail: The filer submits the extension form by using an approved e-file provider to return it electronically or by mailing the paper filing to the Internal Revenue Service Center.
- Retain proof of submission: The filer keeps records of the filing date, payment confirmations, and transmission acknowledgments as evidence that the extension request was submitted correctly.
Use our IRS Account Transcript Service to confirm extension acceptance and maintain accurate IRS records.
Common Mistakes and How to Avoid Them
These errors occur frequently when organizations file Form 8868.
- Confusing filing time with payment time: Organizations avoid this mistake by understanding that Form 8868 extends only the time to file and does not extend the deadline to pay taxes owed.
- Submitting late extension requests: Organizations prevent this issue by tracking their due date and submitting Form 8868 before the original filing deadline for the tax year.
- Using one request for multiple returns: Organizations avoid this error by filing separate extension requests for each required return, rather than assuming that one form covers all filings.
- Incorrect or missing organization information: Organizations reduce the risk of rejected returns by ensuring that all organization details on Form 8868 are accurate and complete before submitting it.
- Failure to retransmit rejected returns: Filers avoid processing delays by promptly correcting and retransmitting rejected returns when notified through the electronic filing system.
If you’re facing penalties for late or rejected returns, see if you qualify for penalty abatement.
What Happens After You File
Once Form 8868 is filed correctly, the IRS provides an automatic month extension of time for the organization, and no approval notice is issued because the extension is granted upon proper filing. The form is considered accepted when the filer receives confirmation that the submission was processed, whether electronically or through postal records for paper submissions. During this period, the organization completes its nonprofit tax return for the calendar year and prepares any final documentation required for accurate filing.
FAQs
How do tax-exempt organizations benefit from filing IRS Form 8868 (2022)?
Tax-exempt organizations benefit by receiving additional time to file their required annual returns without providing a reason for the request. The extension helps organizations complete accurate filings, manage internal reviews, and avoid late-filing penalties as long as returns are submitted by the extended deadline.
How do I e-file Form 8868 if my organization prefers electronic submission?
You can e-file Form 8868 using an IRS-authorized e-file provider that submits the extension electronically to the IRS. The filer must ensure that all organizational details are correct before submission, as errors may result in rejected returns.
Are complementary extension requests allowed for exempt organization filings?
Complimentary extension requests are not offered by the IRS, since Form 8868 already provides an automatic extension without additional fees. Organizations must still pay any taxes due by the original deadline to avoid penalties.
Do other tax-exempt organizations follow the same extension rules for Form 8868?
Other tax-exempt organizations follow the same rules, as each eligible organization must submit its own Form 8868 for the specific return it wants to extend. The extension only applies to filing and does not change payment deadlines.
Can Form 8868 be used by organizations that file multiple returns for the same tax year?
Yes, but each tax form requires a separate extension request, and organizations need to submit a distinct Form 8868 for every filing they plan to extend.
