Today is the deadline for tax-exempt organizations and certain other nonprofits that follow a calendar tax year to file 990 Series Forms!
With less than 24 hours left to file 990 returns, filing an extension Form 8868 for your organization is a great option for avoiding IRS penalties and jeopardizing your organization’s good standing.
How Does an 8868 Extension Work?
Form 8868 is an IRS tax extension that tax-exempt organizations can file to request an extension of up to 6 months of additional filing time. Like many other IRS tax extensions, the 8868 is automatic, this means that the IRS doesn’t require any reason for organizations to request more time to complete their 990 returns.
Filing Form 8868 is actually very simple and only requires some basic information. All you need to complete your Form 8868 is,
The organization’s basic info, such as the Name, address, EIN, and tax year.
The type of form that you are requesting an extension for.
The total tax liability and payment for the 2022 tax year.
The tax balance due (if any).
In addition to 990 returns, Form 8868 can be used to request an extension for a few other tax returns as well. The deadlines for the following forms can be extended by filing Form 8868.
Form 990 or Form 990-EZ
Form 990-T (For sec. 401(a) or 408(a) trust, other trusts, and Corporations)
Form 4720 (For individuals and other than an individual)
Remember, the deadline for filing Form 990-N cannot be extended using Form 8868.
Why Filing an Extension is a Great Option!
Completing 990 returns for your organization can be time-consuming. They do require a lot of detailed information, including financial information.
However, filing late and failing to file at all can have major consequences on your organization, including IRS penalties. The IRS penalty amounts can range from $20 – $110 per day based on your organization’s gross receipts.
This is exactly why filing an extension for nonprofit organizations is always the best option. Not only will it help your organization avoid potential IRS penalties, but it will help you maintain IRS compliance rather than jeopardizing your good standing with the IRS.
E-file Form 8868 with ExpressExtension by Midnight!
ExpressExtension is an IRS-authorized e-file provider that provides you with a seamless and effortless way to e-file your 8868 extensions.
You can complete your filing from any device. You also have the option to pay your taxes due, if any, during the filing process.
Plus, if the IRS rejects your extension for any reason you can fix the error and retransmit the return for free. If you find you have any questions along the way, you can contact our team of experts for instant help via live chat, phone, and email.
If you need a complete solution to e-file your organization’s 990 return, check out our sister product, Tax990! They are an IRS-authorized 990 e-filing solution for nonprofits.