Form 1065 is the federal tax return used by partnerships to report income, deductions, gains, losses, and other financial information to the Internal Revenue Service (IRS).
Unlike corporations, partnerships generally do not pay income tax at the entity level. Instead, profits and losses “pass through” to the individual partners, who report their share on their personal tax returns.
Form 1065 must be filed by:
- General partnerships
- Limited partnerships (LPs)
- Limited liability companies (LLCs) taxed as partnerships
- Certain foreign partnerships with U.S. income
Even if the partnership had no income or activity during the year, filing may still be required.
The form provides a complete summary of the partnership’s financial activity, including:
- Gross receipts or sales
- Cost of goods sold
- Operating expenses
- Guaranteed payments to partners
- Ordinary business income (or loss)
- Separately stated items (interest, capital gains, charitable contributions, etc.)