If you are a partner in a partnership, your business will need to submit a tax return both for your business ( Form 1065) and an individual return ( Form Schedule K-1) as a partner of the firm, allowing you to separate business expenses and deductions from private expenses.
Form 1065 gives the IRS a snapshot of the company’s financial status for the year. The partners must report and pay taxes on their shares of income from the partnership on their tax returns. Partners must pay income tax on their earnings regardless of whether the gains were distributed.
- Federal Tax Forms: Form 1065 and Schedule K-1 for individual partners.
The partnership tax return is generally due by the 15th day of the third month following the end of the tax year.