How to File the Updated 8868 Extension Form

IRS Form 8868 is a tax extension form for exempt organizations and private foundations needing to increase their filing deadlines for 990 tax returns. The form separates into two sections - Part I and Part II - with each one offering a 3-month extension of time.

For the 2016 filing year, the IRS has eliminated the separate sections and now offers the 8868 form as a single filing that grants an automatic 6-month extension of time. Completing the new 2016 Form 8868 is similar as it was before; however, here are some IRS guidelines to follow when submitting an extension:


Basic Organization Details
Begin the form by adding essential information about your exempt organization or private foundation which includes the following:

• Organization Name
• Organization Address
• Employer Identification Number (EIN) or Social Security Number (SSN)

The IRS added the social security option for individuals filing the form. If you are filing on behalf of a nonprofit or private foundation, you should enter the federal employer identification number.


Return Codes/Books/Group Return
Enter the return code that represents that tax form you want to extend its filing time:

Form 990/990-EZ - 01 Form 990-T (corporation) - 07

Form 990-BL - 02 Form 1041-A - 08

Form 4720 (individual) - 03 Form 4720 (other than individual) - 09

Form 990-PF - 04 Form 5227 - 10

Form 990-T (sec. 401(a) or 408(a) trust) - 05 Form 6069 - 11

Form 990-T (trust other than above) - 06 Form 8870 - 12

You need to enter the full name of the person or officer that manages the organization’s books or financial statements along with the organization’s phone number, fax number, or both. You also have a choice to indicate whether the organization does not have an office or place of business within the United States.

If the extension is for a group return, the IRS requires you to enter the organization’s 4-digit Group Return Number (GEN). You can select if the extension is for the whole group or part of the group. If it’s for part of the group, you should attach a list of names and EINs of those organizations.

Tax Year Period
On Line 1, enter the extended due date which is six months after the initial filing deadline. For example, if your due date is June 15, then your extended date is December 15. Then, you can choose if the extension is for a calendar year or fiscal year. If it’s for a calendar year, then enter the numerical year, i.e. 2016. For fiscal tax years, enter the begin date followed by the end date, i.e. March 1, 2016, to February 28, 2017.

Important: The updated Form 8868 only applies to tax year 2016 and upcoming tax years in the future. If you happen to be filing an extension for 2015, you’ll need to revert to the 2-part form.

For organizations filing for a tax year period less than a full 12 months, you can indicate the reason why on Line 2.


Tax Liabilities
Line 3a, b, and c are for exempt organizations and private foundations with tax amounts owed to the IRS. Enter any tentative taxes minus nonrefundable credits on Line 3a. List refundable credits, estimated tax payments made, and any prior year overpayments as a credit on Line 3b. Subtract your total sum of 3b from 3a to get your “Balance due.” on Line 3c - that’s the amount you have to pay either through EFTPS or with a check or money order.

E-file Tax Extensions
E-filing Form 8868 to the IRS is the best way for both individuals and tax professionals. By using IRS-authorized, e-file services like ExpressTaxExempt or ExpressExtension, you can typically complete and transmit a 2016 8868 form in less than 10 minutes. The IRS processes e-filed forms much quicker than paper filing, so you’ll receive confirmation and a copy of your extension soon after transmitting. And with e-filing, you usually have until Midnight local time of the deadline date to submit your form.

For any questions about your organization’s information, tax year period, tax liabilities, or Form 8868 return codes, you can contact the IRS Tax-Exempt Hotline at 877.829.5500. If you’re interested in e-filing your extension form, you can reach ExpressTaxExempt at 704.839.2321 or via email with support@ExpressTaxExempt.com.

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What to Do For the May 15 Deadline

There’s about a month left before the May 15 filing deadline for tax-exempt organizations. The due date only applies to groups who operate on a calendar tax year which is from January 1 to December 31.

If this is your first time filing for a nonprofit or charity, or you just can’t remember exactly how to file a 990 form, here are a few tips to get you prepared.

Get Proper Documents Together
Before you even begin with the first page, you need to have the right information readily available or else you’ll waste time looking for papers rather than completing your return. Depending on which 990 form you need to file, you may have to report various details such as revenue and expense amounts, program services, a list of employees, financial statements, governance and more.

Some sections of a 990 tax return require additional information from a Schedule which you attach to your form. Schedules allow you to submit extra details about certain activities conducted by your organization - some schedules may apply to you such as Schedule B for contributions while others may not. For instance, Schedule H is only for hospitals and Schedule N is for terminated tax-exempt groups.

Types of 990 Forms
The IRS offers four main types of 990 forms - certain kinds serve as simpler options to the original 990 long form. Choosing the most appropriate return will save you precious amounts of filing time:

• Form 990-N (e-Postcard) - For organizations reporting gross receipts less than $50,000
• Form 990-EZ (Short Form) - For organizations reporting gross receipts less than $200,000 and total assets less than $500,000
• Form 990 (Long Form) - For organizations reporting gross receipts equal to or greater than $200,000 and total assets equal to or greater than $500,000
• Form 990-PF - For organizations identifying as an exempt private foundation, taxable private foundation, or a nonexempt charitable trust treated as a private foundation

Extension Form 8868
For any reason, if you are not ready for the May 15 deadline, you can extend your filing due date by submitting IRS Form 8868. The 8868 form allows you to increase the time you have to file a 2016 990 form by six months. You are responsible for submitting an extension request before your original due date - any later and the IRS will automatically reject it. There is no explanation required for filing an extension; however, if your organization owes any tax liabilities, it still must be paid by the original filing deadline.

Paper Filing vs. E-filing
Electronic filing is becoming the most preferred method for tax-exempt organizations and tax professionals to send 990 forms to the IRS. With paper filing, you’re sacrificing a significant amount of time to physically prepare financial statements, search and complete schedules, and mail the tax return without any confirmation from the IRS.

E-filing a 2016 Form 990 requires less time to process and is much easier to prepare. Transmitting a 990 tax return with an IRS-authorized, e-file provider - such as ExpressTaxExempt.com - offers more security than postal mailing, and you can receive instant confirmation of your filing status. The IRS also recommends exempt organizations to e-file rather than paper filing.

If you have any intensive tax questions regarding your organization’s revenue, expenses, or activities, you should contact your local tax professional or the IRS Tax-Exempt Hotline at 877.829.5500. For concerns or assistance with e-filing, you can reach out to ExpressTaxExempt at 704.839.2321 or with support@ExpressTaxExempt.com.

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E-file 990-N or Form 8868 from Anywhere

The IRS requires tax-exempt organizations to file an annual information return each year - this is nothing new within the nonprofit industry.

But filing a tax return for your exempt organization takes a significant amount of time away from other organizational programs and activities - even if you operate a small nonprofit.

Well, no longer will you have to set aside precious time to file a return for your tax-exempt group. ExpressTaxExempt offers an easy and secure way to transmit 990 forms quicker than ever. And here’s the fun part, you can get your filing done within minutes without being near a desk or computer!

Form 990-N Mobile App
With the FREE ExpressTaxExempt - Form 990-N app, small tax-exempt organizations with less than $50,000 in gross receipts can e-file their 2016 990-N (e-Postcard) directly from a iOS or Android mobile device. You can complete the entire e-filing process from anywhere at any time - the only information needed is basic organization details, tax year period, and confirmation of total revenue less than $50,000.

Before transmitting to the IRS, your e-Postcard is automatically checked to ensure you answered everything correctly. And once the IRS approves your filing, you’ll receive a confirmation directly to your email. If you get a rejected return, the app points out what information you need to correct and allows you resend your form without any extra costs.

Form 8868 Mobile App
If your nonprofit or charity has gross receipts over $50,000, and you want extra time to file your 2016 form 990, 990-EZ, or 990-PF, you can download the FREE ExpressTaxExempt - Form 8868 and conveniently file a tax extension using your iOS or Android handset.

E-filing only takes minutes to complete, and all you need is your organization’s basic details, tax year period, and select the annual tax return you typically file with the IRS. You can also enter any estimated tax liabilities if necessary. Your extension form gets checked for any mistakes before transmitting, and you’ll receive a PDF copy of the extension after sending it.

New e-Postcard Application Site
ExpressTaxExempt is constantly developing new simple and secure ways for exempt organizations to file tax returns with the IRS. And now, small tax-exempt groups can quickly e-file IRS Form 990-N (e-Postcard) just by using their employer identification number (EIN).

With our new e-Postcard portal, you can search your EIN and view which years you have or have not filed. Select the tax year you want to submit, and we automatically load your information directly from the IRS database - all you need to do is confirm that gross receipts are less than $50,000 and transmit. Go to epostcard.expresstaxexempt.com from your phone’s mobile browser and complete your 2016 e-Postcard filing before May 15.

Contact our US-based customer support if you have any questions about e-filing 990 forms or about your filing status; we’re happy to help! You can reach us at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or send us an email - day or night - to support@ExpressTaxExempt.com.

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