Form 8868 is the extension form obtained from the Internal Revenue Service for an automatic extension of six months to file Form 990. This form can be used by charities, non-profit organizations, and others who have tax exemptions. This automatic extension is applicable for these organizations, without having to submit a valid reason for extension with the IRS.
Deadline/DueDate for Form 8868
The deadline to fill and submit Form 8868 is May 16, 2022. For fiscal year taxpayers, the deadline is the 15th day of the fourth month, after the tax year ends. A penalty will be levied if the returns are not filed after the due date unless a valid reason is submitted for late filing. The penalty can be up to $53,000 for the organizations that file late.
Information required to file Form 8868
To fill Form 8868 appropriately, it is required to enter the complete name and address of the organization, its EIM and Tax ID, the period of the tax year, and the Form for which extension is required. The total tax liability and payment for the year 2021 are required to be entered, along with the balance dues if any. It has to be made sure that the information for the non-profit organization matches with the database of the IRS.
Purpose of Form 8868:
Form 8868 is used by an organization to request an automatic extension of the time to file the returns for trusts. The trustee of the trust who is required to file Form 1041-A or Form 5227 should also file Form 8868 to request a time extension to file the returns. They can use this form to apply for an automatic six-month extension to time to file the returns of the organization. The original form should also be sent to the IRS. An extension of 6 months will be granted if the form is properly filed and if all the balances that are due on line 3c are paid by the due date.
Form 8868 cannot be used to extend the due date of Form 990-N and the organization will strictly be allowed an extension of only 6 months for a return, for a tax year. The form can either be filed electronically or sent to the Department of Treasury, Internal Revenue Service Center.
Applications of Form 8868:
With the help of Form 8868, organizations can extend the tax duration of the following forms:
- Form 8870
- Form 990
- Form 990- BL
- Form 990- PF
- Form 990 T (Sec 401a or 408a trust)
- Form 990- T (trusts and corporations)
- Form 1041 – A
- Form 4720 – individual and other than individual
- Form 5227
- Form 6069.
The deadline to file Form 8868 by charities and non-profit organizations is May 16th, 2022 and the purpose of the form is to benefit from a 6 months extension if filing their returns with the IRS. The best way to file the Form before the deadline to avoid penalties is to fill it with online portals like Tax2efile.