Change is coming to the way you file extensions for your tax-exempt organizations. The IRS has updated Extension Form 8868 for the upcoming 2016 filing tax year - that means changes will take place at the start of the new year.
IRS Form 8868 grants exempt organizations an extension of time to file their annual tax returns. It will still continue to work as intended, but the IRS has made it just a bit easier to manage. Here’s what you can expect soon:
- Form 8868 will now only be one form
- It will grant a full 6-month automatic extension
- There is no longer a Part II section on the paper Form 8868
- A valid explanation for an extension is not required
What Remains the Same
Form 8868 is applicable for the same tax returns as before - meaning it still can’t be filed for IRS Form 990-N (e-Postcard). And you will still need to submit a separate form for each return you choose to extend.
It’ll still ask the same required questions minus the Part II section, and it will only extend the time you have to file. If your organization has any tax liabilities, you are responsible for paying it in full by the original deadline.
The IRS still requires the 8868 form to be submitted before your original filing due date which is the 15th day of the 5th month after the end of your organization’s accounting period. Filing late will result in a denied request and possibly of penalties for your tax return. You can access a preview of the updated Form 8868 at the IRS website.
E-filing with ExpressExtension.com
We will also update our e-filing services to accommodate the new 8868 changes and continue offering you the most streamlined filing experience available. Feel free to call our U.S. - based customer support team for assistance with tax extensions or if you have any questions about the new Form 8868 next year - you can reach us at 803.514.5155 or email at support@ExpressExtension.com.