A Form 1065 allows a partnership to report their financial activities to the IRS. This would include profits, losses, deductions, and credits. Partnerships do not pay income tax with this return. Rather they pass the profits or losses on to the partners to report to their individual tax returns. Partnerships that can use Form 1065 include general partnerships, limited partnerships, and LLCs qualified as domestic partnerships.
Filing Process
Your Form 1065 is due March 15th of the following year, or 3 months after the end of your tax year. Or October 15th if you file an extension. To prepare your 1065 you will need both a profit and loss statement and a balance sheet. The first page of the form will report on the employer identification number, the number of partners, and start date of the business. You will also need basic information about the partners and their percentage of ownership. Some additional forms you may need to attach include:
- Form 4562-Depreciation and Amortization
- Form 1125-A-Cost of Goods Sold
- Form 4797- Sales of Business Property
- Any 1099s the partnership issued
- Form 8918-Material Advisor Disclosure Statement
- Form 114-Report of Foreign Bank Account and Financial Accounts
- Form 3520-Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts
Filing Form 1065
Meet with a qualified tax preparer to help you properly assembly your 1065. This will help you avoid penalties.
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