F8868-908-02: Tax year end doesn't match IRS records

What this rejection means

The tax year end date on your Form 8868 does not match the accounting period the IRS has on file for your organization. The rule has exceptions, which depend on the return code and on the Initial return, Final return and Change in accounting period boxes.

IRS business rule F8868-908-02: The tax year ending date ('TaxPeriodEndDt' in the Return Header) must match data in the e-file database unless Form 8868, Item 'ExtensionReturnCd' is any value other than: 1. "03" (Form 4720 individual), 2. "08" (Form 1041-A), 3. "10" (Form 5227), 4. "13" (Form 5330 individual), or 5. "14" (Form 5330 other than individual), or 6. "15" (Form 990-T (governmental entities), or 7. ['InitialReturnInd', 'FinalReturnInd', or 'AccountingPeriodChangeInd' checkbox] in 'EOAutomaticExtensionFileTmGrp' is not checked.

The official wording is hard to read. In practice: the IRS compared your year end with its record, and they did not match.

Why it happens

• A typo in the end date. For example, the wrong month or year.
• The wrong year end. A board may think of its year as the calendar year when the IRS has a fiscal year on file, or the other way round.
• The organization changed its fiscal year and the IRS was not told. The IRS record still shows the old year end.
• A first or last year. The first period of a new organization, or the last period of one that is closing, may not end on the usual date.

How to fix it

1. Confirm your year end. Compare the date with your most recent accepted return and with your IRS correspondence.
2. If the date was mistyped, correct it and send the extension again.
3. If this is your first or final period, check the matching box on Form 8868 and send it again.
4. If you changed your accounting period, check the change in accounting period box. The Form 8868 instructions say that if you check it, you must already have applied for approval to change the tax year, unless certain conditions are met. They refer to Form 1128 and Publication 538.
5. Report the change properly. The IRS says an exempt organization changes its accounting period by filing a return for the resulting short period, noted "Change in Accounting Period." If it already changed its period within the last 10 calendar years, it must use Form 1128. A change cannot be made by filing Form 990-N for the short period.

The extension still has to be filed by the original due date of the return. Fix this quickly if the deadline is close.

When to contact the IRS

If the date you entered is your real year end and the extension is still rejected, the IRS record may be different from what you expect. Call IRS Tax Exempt and Government Entities Customer Account Services at 877-829-5500 (toll-free). Ask what accounting period the IRS has on file for your EIN. Written questions can go to Internal Revenue Service, TE/GE Exempt Organizations, Room 6403, P.O. Box 2508, Cincinnati, OH 45201, or fax 855-204-6184.

Related codes

• TEGE-911: the same check on Form 990 and 990-EZ. The tax period end date must match IRS records.
• TEGE-922: on Form 8868, the EIN and name control must match IRS records.
• F8868-053-01: the extension must be received on or before the due date of the return.
• R0000-940-13: the tax year end date must be valid for the form year.