IRS Grants Filing Extension for Tax Exempts Using Direct Pay

The IRS is providing an extension for tax-exempt organizations that aims to make it easier to file for direct payment for energy tax credits.

The IRS released guidance Friday that gives an automatic six-month extension to entities filing an exempt organization business income tax return, or Form 990-T, and any relevant attachments. The extension is for entities planning to claim direct payment for energy projects.

The Democrats’ 2022 tax-and-climate law allows tax-exempt organizations to receive cash payments instead of tax credits for energy projects.

• The IRS is granting this relief because many entities eligible for direct pay may be unfamiliar ...