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Filing taxes can be a daunting task, especially for non-profit organizations balancing numerous responsibilities. Fortunately, if you need more time to prepare your organization's tax return, the IRS Form 8868 provides a convenient solution by allowing you to apply for an extension. This step-by-step guide will walk you through the e-filing process, ensuring your non-profit meets its tax obligations without the rush.
Before diving into the filing process, it’s crucial to grasp the purpose of Form 8868. This form is used by non-profit organizations to request an automatic 6-month extension to file their required IRS forms, such as the 990 series. Remember, this extension applies to filing the forms, not an extension to pay any taxes due.
Step 1: Begin by accessing 990.tax. If you're a returning user, log in with your account details. New users can start by entering the name or EIN of their non-profit organization to create an account.
Step 2: Fill Out Basic Information Start the process by providing essential details about your non-profit organization. Key information includes the organization's name, Employer Identification Number (EIN), and address. Ensure accuracy in this step, as this data links your request to your organization's tax records.
Attention to Tax Year Dates: It’s vital to specify the tax year dates accurately. The IRS requires Form 8868 to be filed by the due date of your organization's return, typically the 15th day of the 5th month after your fiscal year ends. Double-check these dates to avoid any complications.
Step 3: “Books in Care of” Section This section asks for information about who maintains the organization’s financial records. Providing these details helps the IRS know who to contact if there are questions about your extension request or financial data.
Step 4: Tax Calculation Details If your organization owes any taxes, this section requires you to estimate the amount and provide details about the payment. While the extension does not cover tax payments, it’s crucial to estimate and pay any owed taxes by your original deadline to avoid penalties.
Step 5: Entering Your Information After entering details about your non-profit’s finances, you'll need to provide information about yourself, especially if you are the filer or an authorized representative. This includes your name, title, and contact information.
Step 6: Review the Form Before submitting, thoroughly review all the information entered on Form 8868. Ensure that all details are accurate and complete to prevent delays in processing your extension request.
Step 7: E-Sign Form 8453-TE To authorize the electronic transmission of your extension request, you must electronically sign Form 8453-TE. This form is an e-file Declaration for an Exempt Organization. By signing, you confirm that the information provided is accurate and that you are authorized to submit the extension request on behalf of your organization.
Step 8: Confirmation of Submission After submitting Form 8868 through an IRS-approved e-file provider 990.tax, you will receive an email confirmation that your application has been accepted. This email, from [email protected], serves as your official acknowledgment from the IRS, so keep it for your records.
Conclusion Requesting an extension for your non-profit organization's tax return doesn’t have to be complex. By following these steps and utilizing the e-filing option, you can ensure your organization stays compliant without the added stress of rushing to meet the original deadline. Always remember to consult with a tax professional if you have specific questions about your organization’s tax situation.