As a result of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, this January, the IRS released an updated version of Form 8868, Application for Extension of Time to File an Exempt Organization Return. Effective for taxable years beginning after December 31, 2015, exempt organizations requesting an extension of time to file their Form 990 series returns are now only required to submit a single Form 8868. This request will now be filed to request a six-month extension of time to file.
Prior to the release of the new form, and for taxable years beginning before January 1, 2016, tax-exempt organizations were required to file two separate extensions. Each extension filed extended the due date for a three-month period of time. Having multiple filings was a burden on tax-exempt organizations and often resulted in missed extension requests and late filing payment penalties.
The new form is a welcomed simplification to the extension process for tax-exempt organizations. Again, this is a reminder that the new Form 8868 provides a single- extension request only available for tax-exempt organizations whose taxable years begin after December 31, 2015.
For more information on Form 8868, contact us.