IRS Instruction 8868 – In the complex world of tax compliance for nonprofits, trusts, and governmental entities, staying on top of filing deadlines is crucial. IRS Form 8868, officially titled “Application for Extension of Time to File an Exempt Organization Return or Excise Taxes Related to Employee Benefit Plans,” provides a vital lifeline by granting additional time to prepare and submit required returns. This SEO-optimized guide breaks down everything you need to know about Form 8868 instructions, including its purpose, eligibility, filing process, deadlines, and recent updates as of 2026. Whether you’re managing a charity, a private foundation, or handling excise taxes for employee benefits, understanding Form 8868 can help avoid penalties and ensure smooth operations.
What Is IRS Form 8868 and Its Purpose?
Form 8868 serves as an application for an automatic extension of time to file specific tax returns for exempt organizations, governmental entities, and certain trusts. It allows filers to request up to a 6-month extension without needing IRS approval in most cases, provided the form is submitted correctly and on time. This extension applies to returns such as Form 990 (Return of Organization Exempt from Income Tax), Form 990-PF (Return of Private Foundation), Form 990-T (Exempt Organization Business Income Tax Return), and others listed in the form’s return codes.
Key purposes include:
- Extending the filing deadline for exempt organization information returns.
- Requesting extensions for excise tax returns related to employee benefit plans via Form 5330.
- Allowing trustees of trusts filing Form 1041-A or Form 5227 to delay submission.
Important note: While Form 8868 extends the time to file, it does not extend the time to pay any taxes owed. Any balance due must be paid by the original deadline to avoid interest and penalties. Additionally, it cannot be used to extend Form 990-N (e-Postcard) filings.
Who Needs to File Form 8868?
Not every organization or filer qualifies for or requires Form 8868. It’s primarily for:
- Exempt organizations: Nonprofits, charities, and similar entities filing Form 990 series returns.
- Governmental entities: Those filing Form 990-T to make an elective payment election, using Return Code 15 for an automatic 6-month extension.
- Trustees of trusts: Required to file Form 1041-A (U.S. Information Return Trust Accumulation of Charitable Amounts) or Form 5227 (Split-Interest Trust Information Return).
- Form 5330 filers: Employers, plan sponsors, administrators, disqualified persons, or qualified professionals dealing with excise taxes on employee benefit plans. This includes extensions for sections like prohibited transactions or excess contributions.
Filers can include exempt or nonexempt organizations, individuals, employers, or disqualified persons. For group returns, a central organization can file on behalf of subordinates by including the Group Exemption Number (GEN) and a schedule if it’s a partial group. A separate Form 8868 is required for each return type—no blanket requests are allowed.
Step-by-Step Instructions: How to File Form 8868
Filing Form 8868 is straightforward but requires attention to detail. Follow these steps based on the latest IRS guidelines:
1. Gather Required Information
- Organization’s name, address, and Taxpayer Identification Number (TIN)—either Employer Identification Number (EIN) or Social Security Number (SSN) for individuals.
- Return Code: Select from the list (e.g., 01 for Form 990/990-EZ, 13 for Form 5330 individual, 15 for governmental entities’ Form 990-T).
- For Form 5330: Include plan name, number, year ending, and excise tax sections.
2. Complete the Relevant Parts
- Part I: Identification: Enter filer details and return code. Complete either Part II or Part III, not both.
- Part II: Automatic Extension for Exempt Organizations: Request a 6-month extension date, estimate tentative tax (line 3a), credits/payments (3b), and balance due (3c). Pay any balance by the original due date. No signature needed.
- Part III: Extension for Form 5330: Request up to 6 months, pay estimated tax (line 1b), and explain reasonable cause for the delay (line 2). Signature under penalties of perjury is required.
3. Choose Filing Method
- Electronic Filing (e-file): Preferred for most forms (except Form 8870, which must be paper-filed). Use IRS-approved software or services like EFTPS for payments.
- Paper Filing: Mail to Internal Revenue Service, Mail Stop 6054, 1973 N Rulon White Blvd., Ogden, UT 84201-0045.
For changes in accounting periods, you may need Form 1128 unless certain conditions are met.
Deadlines for Filing Form 8868
The deadline to file Form 8868 is the original due date of the return you’re extending. For calendar-year filers:
- Form 990 series: Typically May 15, extending to November 15.
- Fiscal-year filers: 15th day of the 5th month after the tax year ends, with a 6-month extension.
For Form 5330, file early enough for IRS review. Only one 6-month extension per return type per tax year is allowed. If approved, the extension is automatic for most forms but may require IRS notification for Form 5330.
Penalties and Consequences of Late Filing
Failing to file on time can lead to severe repercussions:
- Interest on Unpaid Taxes: Charged from the original due date, regardless of extension.
- Late Payment Penalty: 0.5% per month (up to 25%) on unpaid amounts, unless reasonable cause is shown.
- Late Filing Penalty: Varies by form; for information returns, it can be significant if not filed post-extension.
- Automatic Revocation: Exempt organizations missing Form 990 filings for three consecutive years (including extensions) lose tax-exempt status effective from the third year’s due date. Reinstatement requires IRS application.
To claim reasonable cause, submit explanations separately after filing—not attached to Form 8868.
Recent Updates to Form 8868 in 2026
The form was revised in January 2026 to emphasize electronic payments and direct deposits for refunds. Key changes include:
- Expanded use for governmental entities filing Form 990-T with Return Code 15.
- Specific handling for Form 5330 extensions, requiring Parts I and III with a signature.
- No new developments reported as of January 23, 2026.
For the latest, visit IRS.gov/Form8868 or check related publications like Publication 538 (Accounting Periods and Methods).
Conclusion: Streamline Your Compliance with Form 8868
Navigating IRS Form 8868 instructions doesn’t have to be overwhelming. By filing timely and accurately, exempt organizations and benefit plan filers can secure the breathing room needed to submit complete returns. Always consult the official IRS resources or a tax professional for personalized advice. Staying compliant not only avoids penalties but also supports your organization’s mission. For the full instructions, download the PDF from the IRS website.