So, you realize that you need more time to file the return for your tax-exempt organization and you want to go ahead and file for an extension; however, you may not know exactly what this extension grants you. For tax-exempt organizations, an Extension Form 8868 can grant a number of things while, at the same time, there are things it cannot grant.
What An Extension Form 8868 Can Grant: An automatic 3-month time extension or an additional, not-automatic 3-month time extension, if you have already received a previous time extension. These time extensions only extend the time needed for a tax-exempt organization to file their appropriate Form 990, except for a Form 990-N (e-Postcard) in which case an extension cannot be filed.
What An Extension Form 8868 Cannot Grant: An extension of time allowed for a tax-exempt organization to pay any taxes due to the IRS. The amount of unrelated business income of your tax-exempt organization determines if you’re liable to be taxed or not. If you expect your organization’s tax to be $500 or more for the year, then you must pay the estimated tax by its deadline, which cannot be extended even if an Extension Form 8868 has been filed. In this case, you need to call the IRS directly (855.829.550) to inquire about the possibility of extending the time to pay your estimated tax.
By using ExpressExtension, you can quickly and easily extend your filing deadline by electronically filing an Extension Form 8868.
What You’ll Need:
Employer Identification Number (EIN)
Estimated amount of tax owed to the IRS, if any
Type of tax form that is normally filed for your return
It’s also important that the information matches exactly what the IRS has on file for your tax-exempt organization. After your extension form has been transmitted to the IRS, you’ll soon receive an e-mail indication of your form being accepted or a reason for rejection. With ExpressExtension, you can always resubmit a rejected return for FREE.
Live professionals are available at our Rock Hill, South Carolina office. Feel free to call (803.514.5155, Monday – Friday, 9am – 6pm EST), e-mail (firstname.lastname@example.org), or chat with us (www.expressextensions.com) for any further assistance e-filing your Extension Form 8868.