TaxNewsFlash-Exempt Organizations

February 1, 2008
No. 2008-06

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IRS Announces Revision of Form 8868

The IRS has announced that Form 8868, Application for Extension of Time to File an Exempt Organizations Return, is being revised in response to the issuance of new procedures for processing extension requests. IRS Notice 1375 (12-2007). The new form is expected to be available in late March, 2008.

In the past, Form 8868 allowed filers to designate an alternate mailing address to which the IRS would send a copy of an approved extension. Under the new procedures, the IRS sends Notice CP 211 to notify filers of the action taken on their extension request. The new Form 8868 does not include space for an alternate mailing address to have a copy sent to the taxpayer's representative. The IRS announcement states that, in order for a copy of the Notice CP 211 to be sent to a representative, taxpayers must file Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization.

The IRS notes that, if Form 2848 or Form 8821 is filed at the same time as Form 8868, the Notice CP 211 may still have been sent to the address on Form 8868 because there was not enough time to establish the alternate mailing address on the IRS records. The IRS also advises taxpayers not to attach Notice CP 211 or Form 8868 to their returns, as this will delay processing of the returns.

KPMG Observation

IRS Notice 1375 refers taxpayers to IRS Notice 1369 for more information about a due date error in some copies of Notice DP 211, and advises taxpayers to consult that notice to make sure their extension requests for Form 990-T are timely.

Notice 1369 states that many tax-exempt organizations that filed Form 8868 requesting a six-month extension of time to file Form 990-T have received Notice CP 211A from the IRS approving only a five-month extension. Notice 1369 states:

For taxpayers who filed an extension for Form 990-T with a due date of May 15, note that the extended due date on Notice CP 211 A is incorrect. The extended due date is November 15. [Emphasis in original.]

KPMG has become aware that taxpayers with tax years ending on dates other than December 31, for whom the original due date of Form 990-T would not be May 15, have received Notice CP 211A approving only a five-month extension, with Notice 1369 attached. For these taxpayers, the language quoted above would not be applicable (i.e., the extended due date should be six months from the original due date of their Form 990-T, not necessarily November 15). Notice 1369 instructs taxpayers that receive a late filing penalty notice to send copies of Notice CP 211A, Notice 1369, and the Form 8868 as filed, to the address on the penalty notice.

Notice 1375 contains a link to Notice 1369. See TaxNewsFlash-Exempt Organizations 2007-119 for a discussion of Notice 1369.

For more information, contact Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax), at (202) 533-3084 or rspeizma@kpmg.com

 

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