If you manage a tax-exempt organization or employee benefit plan, you know the pressure of meeting IRS deadlines. Form 8868 offers critical breathing room when you need more time to prepare accurate returns. This guide walks you through everything you need to know about using Form 8868 for tax year 2010.

What the Form Is For

Form 8868 is the IRS's official application that allows tax-exempt organizations, trusts, and certain other entities to request additional time to file their annual information returns. Think of it as a "pause button" that gives you extra months to gather documents, verify information, and complete your filing without incurring late penalties.

During 2010, this form served exempt organizations filing various returns including Form 990 (Return of Organization Exempt From Income Tax), Form 990-EZ (Short Form), Form 990-PF (Private Foundation), Form 990-T (Exempt Organization Business Income Tax Return), Form 4720 (Return of Certain Excise Taxes), and Form 5227 (Split-Interest Trust Information Return). It also covered excise taxes related to employee benefit plans filed on Forms 5330, 8955-SSA, and others. IRS.gov

The key advantage: properly filing Form 8868 prevents late-filing penalties that would otherwise accumulate at $20 per day for smaller organizations, potentially reaching thousands of dollars. For organizations with gross receipts exceeding $1 million, penalties could climb even higher. IRS.gov

When You’d Use Form 8868

Late Filing vs. Amended Returns

Using Form 8868 for Extensions

You file Form 8868 before your original return due date when you know you need more time. For most calendar-year exempt organizations with December 31 year-ends, Form 990 is due May 15th. If you can't meet that deadline, you must submit Form 8868 by May 15th to secure an extension. Missing the original deadline means you're filing late, not requesting an extension—and late filing triggers penalties immediately.

In 2010, the extension system worked differently depending on your organization type:

• Most exempt organizations: Could request an automatic 3-month extension, with the possibility of requesting an additional (non-automatic) 3-month extension for a total of 6 months
• Corporations filing Form 990-T: Received an automatic 6-month extension
• Trusts filing Form 990-T: Received an automatic 3-month extension, with the option to request an additional 3 months

Important timing note: Form 8868 must be filed by the original due date of your return. Filing it after the deadline won't protect you from penalties. IRS.gov

What Form 8868 Does NOT Cover

This form only extends your time to file the return—it does not extend your time to pay any taxes owed. If your organization owes unrelated business income tax or excise taxes, payment must still be made by the original due date to avoid interest and penalties.

Amended Returns Are Different

If you've already filed your return but need to correct errors or provide additional information, you don't use Form 8868. Instead, you file an amended return by writing "Amended Return" at the top and including a statement explaining what changed and why. You generally have three years from the original filing deadline (or three years from when you actually filed, whichever is later) to file an amended return.

Key Rules or Details for 2010

Two-Digit Form Code Requirement

Starting in 2010, the IRS redesigned Form 8868 to require a two-digit "Form Code" identifying which return you were extending. This helped the IRS process extensions more efficiently and match them to the correct returns.

Automatic vs. Non-Automatic Extensions

The 2010 rules clearly distinguished between these two categories:

• Automatic extensions were granted simply by filing a properly completed Form 8868 by the due date. No IRS approval was needed.
• Non-automatic (additional) extensions required the organization to demonstrate "reasonable cause" for needing extra time beyond the automatic period. The IRS reviewed these requests and could deny them.

Extension Periods by Entity Type

• Exempt organizations filing Form 990, 990-EZ, or 990-PF: 3-month automatic extension
• Corporations filing Form 990-T: 6-month automatic extension
• Trusts filing Form 990-T: 3-month automatic extension
  All types could request additional extensions (up to 6 months total) if they showed reasonable cause IRS.gov

Maximum Extension Limit

No organization could receive more than six months of total extension time under any circumstances. Extensions of time to file beyond six months were not permitted.

Group Return Provisions

A central organization filing a group return for multiple subordinate organizations could use Form 8868 to request an extension for the entire group, but had to enter the applicable Return Code and specify the group return information.

Special 2010 Hospital Extensions

For tax year 2010 specifically, hospital organizations filing Schedule H (Hospital Compliance) received automatic three-month extensions without filing Form 8868 if their returns were due before July 1, 2011. This was a special accommodation while the IRS finalized Schedule H requirements. IRS.gov

Step-by-Step (High Level)

While preserving the original content, here’s the logical sequence:

Step 1: Determine Your Extension Need

Calculate your organization's original return due date based on your fiscal year-end. For calendar-year organizations (ending December 31), Form 990 is typically due May 15th (the 15th day of the 5th month after year-end).

Step 2: Gather Required Information

Before starting Form 8868, collect your organization's:

• Employer Identification Number (EIN)
• Full legal name and mailing address
• Tax year beginning and ending dates
• The specific return you're extending (990, 990-EZ, 990-PF, 990-T, etc.)
• Estimated tax balance (if filing Form 990-T with tax owed)

Step 3: Complete Form 8868

Fill out the form carefully, including:

• Enter the appropriate two-digit Return Code identifying which return you're extending
• Provide your organization's identifying information
• Specify the automatic extension requested (3 or 6 months depending on your entity type)
• Calculate the requested extended due date
• If requesting a non-automatic additional extension, complete the additional section and explain your reasonable cause

Step 4: File by the Deadline

Submit Form 8868 before your original return due date. You can file electronically (recommended for faster processing) or mail a paper form to the IRS. Electronic filing is available through authorized IRS e-file providers.

Step 5: Keep Your Confirmation

Save proof that you filed Form 8868 on time—whether it's an electronic confirmation number or certified mail receipt. This documentation protects you if the IRS questions whether you filed timely.

Step 6: Mark Your Extended Deadline

Calculate and calendar your new filing deadline. Remember, even with an extension, you must file by the extended date or face penalties.

Common Mistakes and How to Avoid Them

Mistake #1: Filing Form 8868 After the Original Due Date

The most costly error is submitting your extension request late. Form 8868 only works if filed by the original return deadline. Filing it even one day late means you're already subject to late-filing penalties.
Solution: Set internal deadlines several weeks before the IRS deadline to allow time for final review and filing.

Mistake #2: Confusing Filing Extension with Payment Extension

Many organizations mistakenly believe Form 8868 extends their time to pay taxes owed. It doesn't. If you owe unrelated business income tax or excise taxes, payment is still due on the original deadline.
Solution: Calculate and pay any estimated taxes owed with your extension request to avoid interest and penalties.

Mistake #3: Using the Wrong Return Code

The 2010 form redesign required specific two-digit codes for each return type. Using the wrong code could cause processing delays or misapplication of your extension.
Solution: Carefully review the Form 8868 instructions to identify the correct code for your specific return.

Mistake #4: Failing to Request the Additional Extension When Needed

If the automatic 3-month extension isn't enough, you must file a separate request for the additional 3 months before the first extension expires. Waiting until after the first extended deadline means you're late.
Solution: Assess early whether you'll need the full 6 months and file for the additional extension well before the first extended deadline.

Mistake #5: Incomplete or Inaccurate Information

Missing information, incorrect EINs, or inconsistent tax years can cause the IRS to reject your extension or fail to match it to your later return.
Solution: Double-check all entries against your organization's official IRS records before submitting.

Mistake #6: Not Keeping Extension Documentation

Without proof of timely filing, you may have difficulty contesting penalties if the IRS claims you filed late.
Solution: Maintain copies of the completed form, submission dates, and confirmation receipts with your permanent tax records.

Mistake #7: Assuming No Consequences for Missing Extended Deadlines

Organizations sometimes treat extensions casually, not realizing that missing the extended deadline triggers the same penalties as missing the original deadline—plus accumulated daily penalties from the original due date.
Solution: Treat your extended deadline with the same seriousness as the original. Consider setting an internal deadline several days before the extension expires.

What Happens After You File

Automatic Extensions

When you properly file Form 8868 for an automatic extension by your original due date, the extension is granted immediately. The IRS doesn't send confirmation letters for automatic extensions. Your filed form (and confirmation number if filed electronically) serves as proof that you have additional time. You can proceed with confidence that your new deadline is in effect.

Non-Automatic Extensions

For additional extensions beyond the automatic period, the IRS reviews your request and reasonable cause statement. While processing these requests, the IRS may contact you for additional information or may approve or deny the extension. Allow time for this review process and continue working on your return during the review period.

Your New Deadline

Mark your extended filing deadline clearly. For a 3-month extension, add 3 months to your original due date; for a 6-month extension, add 6 months. For example, if your Form 990 was originally due May 15, 2011, a 3-month extension moves your deadline to August 15, 2011, and a 6-month extension would move it to November 15, 2011.

IRS Expectations

The IRS expects you to use the extension period to complete and file an accurate, complete return. During this time:

• Continue gathering documentation
• Complete all required schedules and attachments
• Have your return reviewed by appropriate personnel
• File electronically if your organization meets the electronic filing thresholds

If You Still Can't Meet the Extended Deadline

You cannot request additional time beyond the maximum 6-month extension period. If you miss your extended deadline, file as soon as possible to minimize accumulating penalties. Consider submitting a penalty abatement request with your late return, explaining the circumstances that prevented timely filing.

No Penalties During Valid Extension Period

As long as you filed Form 8868 properly and timely, no late-filing penalties accrue during your valid extension period. However, interest on any unpaid taxes continues to accumulate from the original due date.

Three-Year Automatic Revocation Rule

Remember that Form 8868 only extends your filing deadline—it doesn't exempt you from the requirement to file. Organizations that fail to file required returns for three consecutive years automatically lose their tax-exempt status, even if they obtained extensions. Extensions buy you time but don't eliminate the filing obligation. IRS.gov

FAQs

Q1: Can I file Form 8868 electronically, or must I mail it?

Both options are available. Electronic filing through authorized IRS e-file providers is faster and provides immediate confirmation. Paper forms can be mailed but take longer to process. For 2010, electronic filing was encouraged but not required for extensions (though certain large organizations had to file their actual returns electronically).

Q2: If my organization doesn't owe any taxes, do I still need to file Form 8868?

Yes. Form 8868 extends your time to file the information return (Form 990, 990-EZ, etc.), regardless of whether you owe taxes. Even pure 501(c)(3) charities with no unrelated business income need to file Form 990 series returns, and Form 8868 provides the extension for those filings.

Q3: What qualifies as "reasonable cause" for requesting a non-automatic additional extension?

Reasonable cause generally includes circumstances beyond your control, such as: unavoidable absence of a key person, loss of records due to fire or natural disaster, death or serious illness of someone responsible for filing, or reliance on erroneous IRS advice. Being busy or having poor recordkeeping typically doesn't qualify. Your explanation should be detailed and specific.

Q4: If I file Form 8868 but then file my return before the extension deadline, is that okay?

Absolutely. The extension gives you until the extended date, but you can file earlier if you're ready. Filing sooner is always better and demonstrates good compliance.

Q5: My organization's fiscal year doesn't match the calendar year. How does that affect my deadlines?

Your deadlines are based on your organization's fiscal year-end. Most exempt organization returns are due on the 15th day of the 5th month after fiscal year-end (15th day of 4th month for certain trusts). Calculate your specific due date from your fiscal year-end, then file Form 8868 by that calculated due date to extend your filing time.

Q6: Can we request an extension for Form 990-N (e-Postcard)?

No. The Form 990-N filing requirement cannot be extended using Form 8868. Small organizations (gross receipts normally ≤ $50,000 in 2010) that file Form 990-N must file by their due date. However, there's no penalty for filing Form 990-N late—but failing to file for three consecutive years still triggers automatic revocation of tax-exempt status.

Q7: What if I filed Form 8868 on time but the IRS sends me a late-filing penalty notice?

Respond immediately with copies of your timely filed Form 8868 and proof of filing (electronic confirmation or mailing receipt). The IRS sometimes sends automated notices before manually processing extension forms. Request penalty abatement and provide documentation of your timely extension filing.

For More Information

Remember: Form 8868 is a valuable tool for managing your exempt organization's filing obligations, but it requires careful attention to deadlines and requirements. When in doubt about your specific situation, consult with a tax professional experienced in exempt organization compliance or contact the IRS Tax Exempt and Government Entities division directly.

For the most current forms and instructions, always visit the official IRS website at IRS.gov.

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