Not-for-Profits ("NFPs") have received some welcome tax news from an unlikely source — the federal highway funding bill. The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 modifies several due dates for tax returns, including the Form 990 annual information returns.
Currently, NFPs can obtain a three-month automatic extension for the form by filing Form 8868 before the original due date (the 15th day of the fifth month after the end of your NFP’s accounting period). For an additional (not automatic) three-month extension, though, an organization must file Form 8868 again and include an explanation of its “reasonable cause” for — or why it deserves — an extension. Beginning with the 2016 returns filed in 2017, the IRS will automatically grant a six-month extension when a not-for-profit submits a timely Form 8868.
Seek the services of a legal or tax adviser before implementing any ideas contained in this blog.