This document contains that partner’s share of the company’s profits or losses over the tax year in question. The partnership agreement determines what share of income and losses is held by each partner in the business.įorm 1065 is essentially an information return that is accompanied by the distribution of a Schedule K-1 to each partner. Instead, the partners or members of the LLC have the responsibility for paying the taxes due as part of their personal tax returns. Unlike other types of tax forms, however, the partnership does not need to pay the IRS any taxes that are due as a result of its income. Partnerships must use IRS Form 1065, the US Return of Partnership Income, to report their annual income to the federal government. How do partnerships file their federal income taxes?
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