990 extensions

Alerts and notices

General information

You can use UltraTax CS to prepare and file the Form 8868 extension for forms 990, 990-EZ, 990-PF, 990-T, and 4720. 

Form 990-N does not have an extension form and cannot be extended.

Batch extensions

While this article explains how to create extensions for individual clients, you have the option of extending multiple clients at the same time. When you select multiple clients to extend together, you are creating a batch extension.

See Creating batch electronic extensions for more information.

Batch extensions do not eliminate the need for you to enter payment amounts for extensions that need it. The extension payment will be 0 unless you enter a different amount or enter tax data that would create an amount due.

Prepare

You should first prepare a client for extension before printing or e-filing the extension.

  • If you want to change the due date, go to the Ext or ExtPF screen in the Payments folder and use the Extended due date and Form 8868 extended due date fields.

    Note: For more information, see the Due dates section below.

  • If you want to stop the application from creating or printing certain extension forms, mark the Suppress extension for Form checkbox on the Ext or ExtPF screen.
  • You can see the calculated extension payment by going to the Est or EstPF screen in the Payments folder and reviewing the Paid with extension field. If you want to force a different amount, go to the Ext or ExtPF screen and use the Balance due on extension and Estimate of total tax liability fields.

    Note: For more information, see the Amount due and tax liability section of this article below.

  • Additional data entry is required for 990-T extensions. For details, see the 990-T section below.

E-file

If you are electronically filing the extension, complete the steps for Data entry and Creating e-file.

Data entry

  1. Go to the ELF screen in the Electronic filing folder and mark File extension(s) electronically.
  2. If you want to pay the balance due on extension through electronic funds withdrawal (EFW), complete the following fields in the Extension Information section at the bottom of the screen.

    If you are not using electronic funds withdrawal, leave all of the following fields blank. Signature information is not required unless EFW is present, and entering signature information without EFW will cause a rejection.

    • Signature Date
    • PIN authorization indicator
    • Taxpayer PIN
    • ERO PIN
    • Form 8453-EO or 8879-EO signed and returned
    • Requested payment date
    • Complete the Electronic Funds Withdrawal Information section on screen ELF-2 

Creating e-file

  1. Choose File > Print Extensions to open the Print Extensions dialog.
  2. Click the Options button to open the Print Options dialog.
  3. By default, UltraTax CS prints the first extension for the federal and state returns. To print only the federal extension, verify that only the Federal checkbox is marked in the Selected Returns tab. To print a second extension for any State which may require one, go to the tab Extension Print Options.
  4. Mark the Create electronic file checkbox.
  5. Click the Print or E-file button. The application will create an electronic extension for each client that did not have errors.

    Note: If the E-File Error Report shows errors are present, UltraTax CS will not create the extension file. See Resolving e-file errors, for more information on how to fix e-files present in the extension.

  6. Transmit the electronic file using CS Connect.

Print

If you are paper filing the extension or need to create a copy for your client or your records, complete the following steps.

  1. Choose File > Print Extensions to open the Print Extensions dialog.
  2. Click the Options button to open the Print Options dialog.
  3. By default, UltraTax CS prints the first extension for the federal and state returns. To choose federal only or state only, go to the Selected Returns tab. To print a second extension for any State, go to the Extension Print Options tab.
  4. To print extensions for other clients, click the Clients button.
  5. Click the Print button.

Print options

To change the default settings for layout, formatting, file and document names, and to choose single or duplex printing, see Setting print options.

Due dates

See 990 IRS filing deadlines & electronic filing information.

Amount due and tax liability

UltraTax CS calculates the amount due and the tax liability of an extensions based on the tax data you enter in the return. You can enter this preliminary tax data in the following ways:

  • If you are licensed for Accounting CS, Workpapers CS, or select third-party applications, you can import general ledger balances.
  • Manually enter the tax information on the applicable input screens throughout the client. 

If you do not enter any preliminary tax data, UltraTax CS  calculates zero balance due. If you don't have any preliminary tax data to enter, you can force the tax liability or balance due. 

Force amounts

Go to the Ext or ExtPF screen in the Payments folder and enter the desired amounts in the Estimate of total tax liability and/or Balance due on extension fields. The amount you enter in the Balance due on extension field flows to the Paid with extension field on the EstT or EstPF screen.

See calculated amounts

Go to the EstT or EstPF screen in the Payments folder and look at the Paid with extension field. Unless you forced an amount (see above), the amount in this field was calculated by the application.

Every time you print the extension, the application:

  • calculates the extension payment amount and enters it in the Paid with extension field,
  • prints this amount on the 990-T return, not on the extension, and
  • issues an FYI diagnostic message indicating that you need to verify the amount paid with the extension before filing the 990-T return.

    Note: If you manually enter an amount in the Paid with extension field, the FYI diagnostic message goes away.

990-T

Extension form 8868 for the 990-T will only print if there is sufficient data entry for the 990-T to calculate.

  1. One or more unrelated business activities set up in the 990-T Activities folder with a description and unrelated business code on the ActivT screen.
  2. One or more income items on the Income or IncomePF, Event or Event-PF, or Rent screen, identified as taxable by using an unrelated business activity code.
  3. The sum of the unrelated income amounts (Form 990-T, Page 2, Line 33) is greater than or equal to $1,000; or the current-year overpayment (Form 990-T, Part V, line 54) is at least $1.
  • When proxy tax is due on Form 990-T, Part IV related to lobbying activities (section 501(c)(4), 501(c)(5), or 501(c)(6) organizations).
  • When a claim of refund due to backup withholding is erroneously withheld and the amount of withholding is entered on Screen 990T.
  • For employee provided fringe benefits subject to tax (per TCJA legislation, December 2017) Line 34 will complete based on Screen 990T and prints Form 990-T.

Alternatively, you can mark the Print Form 990-T (Force) checkbox on screen OthInfo in the General folder, or enter a Balance due on extension on screen Ext or ExtPF in the Payments folder.

For more information see, 990-T Overview.

Additional information

Return code

The application fills in the return code based on data you enter in the client. Click the link for the code you want.

Choose File > Client Properties > select Exempt Organization as the type of the 990.

Choose File > Client Properties > select Private foundation as the type of the 990.

In field Organization type, select 3-401(a) trust on screen 990T in the 990-T folder.

In field Organization type, select either 2-501(c) trust or 4-Other trust on screen 990T in the 990-T folder.

In field Organization type, select 1-501(c) corporation on screen 990T in the 990-T folder.

Note: If the extension form is missing the return code, preview the extension by choosing File > Print Extension > mark Paper > Preview. 

Second extension

For 990 returns from 2016 and later, second extensions are no longer required for Forms 990, 990-PF, 990-EZ, 990-T. The second extension option is still available in the File > Print Extensions > Options button > Extension Options tab. If you choose that option, nothing will happen when you print.  

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