The IRS is warning exempt organizations that file Form 990-EZ or Form 8868 on paper risk running into issues, either getting premature notices regarding a failure to file the Form 990-EZ or long delays in getting an acknowledgment of the approval of their extension request.[1]

The article in the June 16, 2021 edition of the Exempt Organization Update indicates the IRS is having processing issues at this time:

The IRS is experiencing delays in processing paper returns, including Form 990‑EZ, Short Form Return of Organization Exempt from Income Tax, and Form 8868, Application for Extension of Time To File an Exempt Organization Return.[2]

The IRS is encouraging organizations to file such forms electronically if at all possible, noting the following potential consequences that may face those filing on paper:

If you file Form 990-EZ on paper, you may receive a prematurely-issued CP259A notice of non-filing. If you file Form 8868 on paper, there may be a delay in receiving CP211A notice confirming approval of your extension request.[3]

However, if an organization has already filed such documents on paper, the agency warns against now attempting a second filing via electronic means:

If you filed your return or extension request on paper, you do not need to take any further action. Please don’t file a second return or contact the IRS about the status of your filing. We appreciate your patience.[4]

[1] “Exempt Organizations Update,” IRS web page, June 16, 2021, https://www.irs.gov/charities-non-profits/current-edition-of-exempt-organizations-update (retrieved June 17, 2021)

[2] “Exempt Organizations Update,” IRS web page, June 16, 2021

[3] “Exempt Organizations Update,” IRS web page, June 16, 2021

[4] “Exempt Organizations Update,” IRS web page, June 16, 2021