How to File a Form 990 Extension(8868 Guide)

Form 990 Extension provides a way for qualified tax-exempt organizations to apply for extra time to submit their annual tax return to the IRS.

The standard Form 8868 is used by exempt organizations to apply for an extension on filing returns that are exempt under the IRC section 6033.

The extension request applies to the filing deadline of applicable exempt organization returns, including:
- Form 990, Return of Organization Exempt From Income Tax
- Form 990-EZ, Short Form Return of Organization Exempt From Income Tax
- Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation
- Form 990-T, Exempt Organization Business Income Tax Return
- Certain other exempt organization returns listed in the Form 8868 instructions

The extension rules depend on the type of return being filed. The following table explains the general requirements:

A Form 990 series return is generally due on the 15th day of the 5th month after the end of the organization's accounting period. By timely filing Form 8868, eligible organizations can generally receive an automatic 6-month extension to file their return.

Form 8868 is commonly associated with extending the filing deadline for Form 990 series returns, but its use is not limited to Form 990, Form 990-EZ, Form 990-PF, or Form 990-T.

Organizations, trusts, governmental entities, and certain other filers may use Form 8868 to request additional time to file several exempt organization, trust, and excise tax returns. Examples of such forms are Form 5227, Form 8870, Form 1041-A etc.

An Extension to File Is Not an Extension to Pay, One of the most important things organizations should understand about Form 8868 is that it extends only the filing deadline. It does not extend the deadline for paying taxes.

If the return being extended has a tax liability, the organization must estimate and pay the amount due by the original due date of the return, even though the completed return may be filed 6 months later under the extension.

The Part 2 Line 3c of IRS Instructions specifically states that Form 8868 does not extend the time to pay tax. Any balance due should therefore be paid by the original return due date to avoid potential interest and late-payment penalties.

Form 8868 can be especially helpful when an organization needs additional time to:

• Complete financial statements or year-end accounting;

• Finalize an audit;

• Reconcile contribution, expense, or investment records;

• Obtain information from related organizations or third parties;

• Review schedules and supporting documentation; or

• Complete the return accurately before submitting it to the IRS.

In these situations, an organization may be financially prepared to satisfy its tax obligations but may not yet have all of the information necessary to complete the return.In simple words, Form 8868 is an administrative safety net for filing, not a payment extension.
Note - Nonpayment of any tax due on the original due date will lead to:

• Interest charges

• Payment penalties

• Other IRS actions to enforce payment

It is necessary for organizations to consult the relevant IRS instructions regarding the particular return to know when payment is due.

Organizations have two options for filing Form 8868:
There are two methods organizations can use when filing Form 8868:

1. Mail Filing of Form 8868 (Paper Filing)

In case the organization uses paper filing, it will be required to do the following:

• Download the most current version of Form 8868 from the IRS website.

• Complete all the information that is requested.

• Mail the form to the IRS mailing address.

The paper filing system is more elaborate in that it involves printing and mailing the form among other requirements.

Where to Mail Form 8868?
The completed form should be mailed to the IRS address specified in the current Form 8868 Instructions.

As of the current IRS instructions, the mailing address is:
Internal Revenue Service
Mail Stop 6054
1973 N Rulon White Blvd.
Ogden, UT 84201-0045

The IRS periodically updates mailing addresses for tax forms. Before organizations mail any paper filing, they need to check their current IRS instructions to make sure that the filing goes to the right place.

2. Filing Form 8868 Electronically
In addition, organizations can also file Form 8868 electronically using an IRS-authorized 990 e-filing portal.

The benefits of filing electronically include an easier process where organizations can:

• Make their request for extension through the internet

• Confirm details before sending

• Receive an acknowledgment after submission through email

• Maintain copies of their submission through the internet

By using an IRS-authorized e-filing website like Efile990, organizations can file Form 8868 electronically without handling any physical forms.

Even though paper filing can be considered an alternative, it is more common to opt for electronic filing because it makes the application process easier.

Advantages of electronic filing include:

• Simple filing procedure

• Fewer risks of making mistakes when posting

• Availability of filing history

• Not required to print and post hard copies

It is essential that organizations always use a government-approved service provider when filing electronic exempt organization returns.

In order to avoid extension filing problems, organizations must ensure that they:

- Submit Form 8868 prior to the due date of Form 990

- Have the appropriate tax year and organization details

- Pick the right return type being extended

- Know that the extension does not extend the tax payment deadlines

- Maintain a copy of the submitted extension request and the IRS confirmation


Conclusion
Filing a Form 990 extension can help organizations avoid missing their annual filing deadline when additional time is needed to complete their return. By submitting Form 8868 on time, eligible organizations can receive additional time to file their required exempt organization return while staying compliant with IRS requirements.

For organizations looking for a simple and efficient way to submit their extension request, Efile990, an IRS-Authorized online filing platform, helps streamline the Form 8868 filing process with an easy-to-use online experience.

File your Form 8868 Online with Efile990 to get an extension with the Form 990 Due dates!