Q:

Why do you use federal tax Form 990?

A:

Quick Answer

Federal tax Form 990 is used by charitable and nonprofit organizations to file informational returns with the Internal Revenue Service, explains TurboTax. This form provides the IRS an overview of the organization's financial information and activities.

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Full Answer

Form 990 requires the entity to provide an overview of its mission or significant activities and disclose the financial details of the entity's expenses, revenues, liabilities and assets, explains TurboTax. Nonprofit and tax-exempt entities that have at least $200,000 in gross receipts or assets worth at least $500,000 as of 2014 must file Form 990 annually. Some entities are exempt from filing Form 990 annually, including churches, other types of religious organizations and some political organizations.

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