IRS Form 1065 (U.S. Return of Partnership Income) is used by partnerships to report their income, deductions, gains, losses, and other financial information. Partners are pass-through entities for federal tax purposes, which means the partnership itself is not subject directly to income taxes. Each partner receives a Schedule K-1 (Form 1065), which details their share of the partnership’s income, deductions, and credits.

Purpose of Form 1065

  • Income Reporting. To report the partnership’s gross income, deductions, gains, losses, and other transactions.
  • Pass-Through Information. The Form 1065 includes a Schedule K-1 for each partner, showing their allocation of partnership items. The partners are ultimately responsible for reporting their allocable share of partnership items and paying any required income taxes.
  • Who Must File. Domestic partnerships (including LLCs treated as partnerships) and certain foreign partnerships engaged in a U.S. trade or business.
  • Due Date. Form 1065 must be filed annually on or before the 15th day of the 3rd month following the close of the partnership tax year. For calendar-year filers, this is March 15th of each year. Extensions can be requested using Form 7004 (Application for Extension of Time to File)

Information Required

  • Partnership Information. Name of entity, address, Employer Identification Number (EIN), date business started, principal business activity and product, and the applicable NAICS business code number.
  • Income & Deductions. The partnership should report their gross income, deductions, credits, and distributions to partners.
  • Basic Schedules. The basic Form 1065 is six pages long and includes Schedules B, K, L, M-1, and M-2. The partnership return should also include a separate Schedule K-1 for each partner.
  • Additional Schedules. Depending on the partnership’s activities, it may need to include a variety of other schedules, forms, and attachments. For example, if the partnership is engaged in rental real estate activities, it should include Form 8825 (Rental Real Estate Income and Expense of a Partnership or S Corporation).
  • Schedule K-2 and Schedule K-3. Partnerships may be required to provide additional foreign information on a K-2 and K-3. There is a domestic filing exception for partnerships with no foreign activities, and all partners are U.S. individuals or domestic estates or trusts.

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Additional Information

Partnerships can find more information in the Form 1065 Instructions and on the IRS website.