Form 8868 Instructions

What is IRS Form 8868?

Who can file Form 8868?

Exempt organizations that couldn’t file their annual information return by the due date can file an extension Form 8868 and request 6 months extension of time.

The following information returns can be extended by filing Form 8868

• Form 990 or Form 990-EZ
• Form 990-PF
• Form 4720 (individual)
• Form 990-BL
• Form 990-T (sec. 401(a) or 408(a) trust)
• Form 990-T (trust other than above).
• Form 990-T (corporation)
• Form 4720 (other than individual)
• Form 6069
• Form 8870

Also, the trustee of a trust who is required to file Form 1041-A or Form 5227 can use 8868 extension form to request an extension of time to file the returns.

When is the Form 8868 due date?

The deadline for filing an extension Form 8868 will vary based on when the organization’s accounting period ends.

For organizations that follow a fiscal tax year, Form 8868 must be filed by the 15th day of the 5th month after your tax year ends.

If the exempt organization follows the calendar tax year, the due date to file Form 8868 is May 15, 2023. Filing Form 8868 for the 2023 tax year will extend the filing deadline to November 15, 2024.

However, if the due date falls on weekends or federal holidays, then the filing deadline will be the next business day.

Form 8868 penalty

If you miss filing your exempt organization return and paying the tax due within the deadline, you will incur penalties from the IRS.

Below are the penalty rates for 8868 form:

Form 8868 Instructions - How to fill out?

To fill out the extension accurately, follow the Form 8868 instructions below

• Name of exempt organization or another filer: The name of the filing organization must be entered. The name entered should match the name on the IRS database.
• TIN: Enter the Taxpayer Identification Number
• Address: Enter your organization’s address. If the address is outside the United States, in the space for “city or town, state, and ZIP code,” enter the information in the following order: city, province or state, and country.

Enter the Return Code based on the type of return for which you are requesting a 8868 form extension. Enter only one return code. If you want an extension for another form, you must file a separate 8868 form for that return.

• Enter the bookkeeper's details, telephone, and fax number.
• Check this box if the organization does not have an office location or address in the United States.
• Check this box if the extension is filed for a Group Return and enter the organization's Group Exemption Number (GEN)

Line 1: Select the tax year for which you request an extension. If you follow a different tax year from the regular calendar year, enter the same..

Line 2: Check the reason for the short tax year.

Line 3a: See the organization’s tax return and enter the estimated amount of tentative tax reduced by any nonrefundable credits. If you expect this amount to be zero, enter -0-.

Line 3b: See the organization’s tax return and enter any refundable credits and estimated tax payments made. Also, include any prior year overpayment allowed as a credit

Line 3c: Subtract line 3b from line 3a and enter the balance due amount.

• Sold before June 1 and not used during the remainder of the period,
• Destroyed (so damaged by an accident or other casualty it isn’t economical to rebuild it) or stolen before June 1 and not used during the remainder of the period, or
• Used during the prior period 5,000 miles or less (7,500 miles or less for agricultural vehicles)
• Address Change - If your address has changed, check the Address Change box.

How to file Form 8868?

Form 8868 can be filed with the IRS either electronically or by paper filing.

Electronic filing or E-filing

E-filing extension Form 8868 is an added advantage to you as the process is quick and simple and you will get an instant status of your return. You can e-file Form 8868 directly with the IRS or can opt to use an e-file service provider.

TaxZerone is an IRS-authorized e-file service provider that supports the electronic filing of extension 8868 form. You can simply enter the required information, calculate the balance due, and transmit the return to the IRS.

Paper filing

Another method to file Form 8868 is paper filing. You can manually fill out Form 8868 and send it via postal email.

If you are paper filing your extension form, make sure you are sending the return earlier before the deadline, as it may take some time for the return to reach the IRS.

Although there are two filing options available for exempt organizations to file an extension, the IRS recommends the e-filing of 8868 form as it is simple, easy, and takes less time and cost compared to paper filing.

Where to send Form 8868 - Mailing address

After filling out all the required information in Form 8868, you are required to manually send the return to the IRS by postal mail.

Send a paper copy of 8868 form to the mailing address mentioned below

Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0045

An application for extension of time to file Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts must be sent in paper format to the address above.

How to e-file Form 8868?

E-filing Form 8868 can be done in 3 simple steps. Before you start with the e-file process, keep the information below ready.

Information required to file Form 8868

• Exempt Organization or Filer information such as name and address.
• Organization's Tax Year
• Taxpayer Identification Number (TIN)
• Return Code of the Application for which the organization needs to file extension form
• Group Exemption Number (GEN) if filing extension for a Group Return.
• Tentative total tax
• Total payments and credits

Once you have all the information above, you can follow the steps below to e-file Form 8868 using TaxZerone.

Step 1: Enter the organization details, select the tax year, and choose the appropriate IRS form for which you’re applying for an extension.

Step 2: Calculate the balance due by providing tentative total tax and total payments and credits

Step 3:Transmit the return to the IRS.

How to pay the balance due while filing Form 8868 online?

While completing step 2, if you have a balance due, you can choose to pay the balance due amount using the electronic funds withdrawal (EFW) option. You will need to provide your bank account information, such as account number, account type, and routing number.

Once the IRS processes your return, your balance due will be automatically debited from your account. Please make sure to maintain a sufficient balance in your account.