Hello, owners and taxpayers of tax-exempt organizations! This message is for you. Tax-exempt organizations provide vital services and programs essential to our community. However, these organizations must meet tax filing deadlines to comply with the IRS regulations. Like all other business organizations, tax-exempt companies should report their taxes to the IRS on or before the set deadline for various reasons, including the retention of the tax-exempt status. They do not need to pay tax returns but report them for the previous year to complete their tax obligations.
As the tax season is busy and arrives at the beginning of the year, many organizations find it stressful to prepare tax reports with all supporting documents and submit them on time. This is where Form 8868, the Application for Extension of Time to File an Exempt Organization Return, comes in as a valuable alternative. Applying this form will give you an automatic six-month extension from the IRS to submit your tax reports.
Form 8868 allows tax-exempt organizations to request an automatic 6-month extension to file their annual information return, typically Form 990 or Form 990-EZ. It’s a simple, one-page form that can also be E-filed online at ExtensionTax.com to save time and hassle. Now, Let’s explore the benefits of applying for Form 8868.
Additional time to prepare the tax returns.
One of the primary benefits of applying for business income tax extension Form 8868 is that it provides additional time to gather all financial information, supporting documents, and proofs to submit the tax returns accurately. Therefore, taxpayers of tax-exempt organizations don’t have to rush with the hanging deadline and prepare incorrect tax reports due to time pressure. Form 8868 grants ample time to prepare income tax reports without any hassle and report them to the IRS smoothly.
Reduced stress and workload
Non-profit organizations often have a smaller workforce and rely heavily on a shared workload. The Form 8868 extension gives them the much-needed breathing space to prepare the tax returns thoroughly and gather all necessary information, documents, and more. Tax-preparing personnel or teams can steer clear of usual tax filing deadlines and enjoy the comfort of an extension to prepare tax reports.
Avoid late filing penalties
The IRS is strict about penalties. You should report your business income returns for your tax-exempt organizations using the original tax form by the deadline or apply for an extension using Form 8868. Otherwise, the IRS will charge penalties, late filing fees, and more. You will lose your organization’s tax-exempt status if you miss the deadline without applying for a proper extension form. By submitting Form 8868 before the original due date, you can extend your filing deadline and avoid these penalties.
Change of plans
It would help if you had ample time to handle certain unexpected situations that might arise to disrupt the usual tax filing operations. Sometimes, you might go through intricate structures or international operations requiring additional time to compile and consolidate all financial data and documents. This extension provides flexibility to address these complexities and allows you to get up to speed without jeopardizing your tax obligations. Form 8868 extension will enable you to assess your financial health, identify areas for improvement, and make strategic decisions that can positively impact your organization’s long-term economic stability.
Please get in touch with our customer support desk with any queries regarding Form 8868 E-filing processes. Call us at +1 – 866 – 245 – 3918 (toll-free) from 8 AM to 6 PM EST on all working days to talk to our customer support executive regarding your doubts, and they will provide immediate clarifications and guidance to sort out your queries. You can also write to us at support@extensiontax.com, and we will get back to you promptly.