How to File an Extension for Form 990

Missing the filing deadline for your organization's Form 990 can lead to significant IRS penalties that accumulate daily. Fortunately, securing an extension is a simple and penalty-free process if you act on time. This article will guide you step-by-step through filing IRS Form 8868 to get an automatic six-month extension to file your nonprofit's informational return.

Understanding Form 8868, the Application for Extension of Time to File

The IRS understands that sometimes, organizations need more time to gather records and prepare an accurate tax return. For tax-exempt organizations, the tool for this is Form 8868, Application for Extension of Time To File an Exempt Organization Return. It grants an automatic six-month extension to file your return, pushing your deadline forward and giving you the breathing room needed to file correctly without incurring penalties for late filing.

It's important to remember what an extension does and does not do. It provides more time to file your return, but it does not provide more time to pay any taxes that may be due. A number of the forms covered by Form 8868, like the Form 990-T, can have an associated tax liability. If you expect to owe tax, you must estimate the amount and pay it when you file your extension. We'll cover that in more detail later.

Who Can File for a Form 990 Extension?

Form 8868 isn't just for the standard Form 990. It covers a wide range of returns that tax-exempt organizations are required to file. When preparing the form, you'll need to specify which return you are extending. You can use Form 8868 to extend the deadline for any of the following:

• Form 990, Return of Organization Exempt From Income Tax
• Form 990-EZ, Short Form Return of Organization Exempt From Income Tax
• Form 990-BL, Information and Initial Excise Tax Return for Black Lung Benefit Trusts and Certain Related Persons
• Form 990-PF, Return of Private Foundation
• Form 990-T, Exempt Organization Business Income Tax Return
• Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code
• Form 5227, Split-Interest Trust Information Return
• Form 6069, Return of Excise Tax on Insured Employee Health Plan
• Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts

Essentially, if your nonprofit has a filing requirement for one of these forms, Form 8868 is the key to getting more time to prepare and submit it.

Key Deadlines: Original Due Date vs. Extended Due Date

To file an extension correctly, you must first know your organization's original filing deadline. This date is determined by your fiscal year-end.

The standard deadline for Form 990 is the 15th day of the 5th month following the end of your organization's accounting period.

Let's look at two common examples:

• Calendar Year-End: If your fiscal year ends on December 31, your original due date is May 15.
• Fiscal Year-End: If your fiscal year ends on June 30, your original due date is November 15.

When you timely file Form 8868, you are granted an automatic six-month extension. This means your new, extended deadline is six months after your original due date.

• For a December 31 year-end: An extension moves the due date from May 15 to November 15.
• For a June 30 year-end: An extension moves the due date from November 15 to May 15 of the following year.

You must file Form 8868 on or before your original deadline to receive the automatic extension. There are no extensions for filing an extension. If you miss that date, you cannot extend the deadline and will likely face failure-to-file penalties from the IRS.

A Step-by-Step Guide to Filing Form 8868

The form itself is very straightforward, especially since almost everyone qualifies for the automatic extension. It's essentially a one-page form with two parts, but the majority of filers will only need to complete Part I.

Step 1: Gather Required Information

Before you begin, have the following information handy for your organization:

• Exact Name: Use the legal name that the IRS has on file.
• Employer Identification Number (EIN): Your organization's unique nine-digit tax ID.
• Address: The mailing address registered with the IRS.
• Fiscal Year: The start and end dates of your accounting period.
• Return to Extend: Know which form (e.g., 990, 990-T) you are extending.

Step 2: Complete Part I - Automatic 6-Month Extension

Part I is for the automatic and uncontested extension. It is quick to fill out:

• Lines 1 & 2: Enter your organization’s name and address. There is also a box to check if the address is new.
• Line 3: Select the return for which you are requesting an extension by entering the form number from the list provided (e.g., 990, 990-EZ).
• Line 4: Check the box to request a 6-month automatic extension. The language here confirms you are applying for the automatic grant of additional time.
• Line 5a: If the extended form has a potential tax liability (like Form 990-T or 4720), you must enter your genuine estimate of the total tax you expect to owe for the year. This requires some initial calculation, even without finalized books.
• Line 5b: Enter any payments already made toward this liability. This could include prior-year overpayments applied to the current year.
• Line 5c: Balance Due. Subtract 5b from 5a. This is the amount you must pay when you submit your extension to avoid late payment penalties and interest. For a standard Form 990, this will nearly always be zero.
• Last Line: State the dates defining the tax year or the calendar year the return covers (e.g., "For calendar year 2023 or tax year beginning ____ and ending ____").

Step 3: Choose Your Filing Method

You have two options for submitting Form 8868 to the IRS: electronic filing or mailing a paper copy.

Electronic Filing (E-Filing)

This is the method the IRS recommends and prefers. It's faster, more secure, and provides immediate confirmation that your form was received and accepted. Most major tax preparation software platforms (such as Drake Tax or Turbotax business editions) support e-filing for Form 8868. You can also file directly through an IRS-authorized e-file provider. When e-filing, you will get an acknowledgment from the IRS within 24 hours.

Paper Filing (By Mail)

If you prefer to mail a paper copy, you'll need the correct mailing address. The specific address depends on the type of return you are extending and your organization's location. You can find the correct address in the official Instructions for Form 8868 from the IRS website. When mailing, a good practice is to use a certified mail service to get a stamped receipt that proves you mailed the form before the deadline.

Common Mistakes to Avoid When Filing an Extension

Filing for an extension is a low-risk procedure, but a few simple mistakes can cause your application to be rejected.

• Filing Late: The number one error is missing the extension deadline itself. Form 8868 must be filed by the original due date of your Form 990. Set a calendar reminder well in advance.
• Incorrect Information: A transposed EIN, a misspelled name, or an incorrect fiscal year can lead to an automatic rejection by IRS systems. Double-check all information before submitting.
• Omitting a Tax Payment: For returns like Form 990-T that carry a tax liability, failing to pay the amount due on Line 5c can invalidate the extension for payment purposes. Remember, the extension only covers the filing itself. The IRS will begin assessing late payment penalties and interest from the original due date on any unpaid balance.
• Forgetting to Sign (for Paper Filers): If you paper file, you must have a proper signature in the signature block. An unsigned return is an invalid return.

After the Extension is Filed

Once your extension is successfully filed, you can relax, but don't forget the new deadline. Keep a copy of your filed Form 8868, along with your e-file acceptance or your certified mail receipt, with your organization's tax records. Continue gathering the financial information and documents needed to complete your main return. Your new focus is preparing an accurate and complete Form 990 to be filed before the new, extended deadline passes.

Final Thoughts

Filing for a Form 990 extension with Form 8868 is a vital protective measure for any nonprofit organization that needs more time to get its records in order. It's a straightforward process that helps you avoid unnecessary late filing penalties and ensures you have the necessary time to submit a complete and accurate return.

While the extension itself is simple, understanding the complexities of exempt organization returns, such as unrelated business income tax (UBIT) rules or private foundation excise taxes, requires precise knowledge. For intricate tax questions that arise during your preparation, our tool, Feather AI, provides answers backed directly by the Internal Revenue Code and official guidance. It's the fastest way to get verifiable, citation-ready answers for tax professionals, letting you focus on accurately filing your returns.