IRS Gives Tax-Exempt Entities Additional Time to Make Payment Election

The IRS is granting certain tax-exempt organizations that are making an elective payment election a six-month automatic extension of time to file an original or superseding Form 990-T, Exempt Organization Business Income Tax Return, with relevant schedules and forms, the agency said on Oct. 11.

This relief means that applicable tax-exempt organizations that were required to but didn’t file a timely extension on Form 8868, Application for Extension of Time to File an Exempt Organization Return, will be granted a six-month automatic extension of time to file a Form 990-T for purposes of making an elective payment election from the original return due date, according to IRS Revenue Procedure 2024-39.

Rev. Proc. 2024-39 also provides a procedure to follow if an applicable tax-exempt entity entitled to this relief receives a notice that their election was ineffective because the return on which it was made was filed after the due date of the return and on or before the automatically extended due date provided under the revenue procedure.