Form 1065 is the U.S. tax return that partnerships use to report their income, deductions, and other information to the Internal Revenue Service (IRS). Here are the different types of Form 1065 commonly filed by partnerships:
1. Form 1065: This is the standard form used by most partnerships to report their income, deductible expenses, and other relevant information. It includes sections for general information, income, deductions, tax computation, and partner information.
2. Form 1065-B: This form is used by certain publicly traded partnerships (PTPs) that are engaged in the business of a partner or trade rather than just being a passive investor. It requires additional information specific to publicly traded partnerships, such as the listing of traded units and detailed partnership income items.
3. Schedule K-1: While not a separate form, Schedule K-1 is an essential part of Form 1065. It is used to report each partner's share of the partnership's income, deductions, credits, and other items. Partnerships must attach a Schedule K-1 for each partner and provide copies to the partners for individual tax filing purposes.
4. Schedule M-3: This schedule is required for partnerships with total assets at the end of the tax year that exceed $10 million. It provides additional details on the differences between book and tax income, helping the IRS identify any discrepancies.
5. Schedule D: This schedule is used to report the partnership's capital gains and losses. It includes details on the sales and exchanges of capital assets, as well as the allocation of the gains or losses among partners.
6. Schedule B: If the partnership has foreign partners or owns specified foreign financial assets, they must fill out Schedule B to disclose information about foreign financial accounts, assets, and other foreign-related transactions.
7. Schedule K: Some partnerships, such as publicly traded partnerships (PTPs), may also be required to attach Schedule K. It provides information about partner capital accounts, changes in partner's ownership, and any accumulated adjustments accounts.
8. Schedule L: Schedule L is used to report the balance sheets of the partnership. It provides a snapshot of the partnership's assets, liabilities, and partners' equity at the end of the tax year.
It is important for partnerships to understand the specific requirements and forms applicable to their situation. Seeking professional advice or referring to the official IRS guidelines is recommended to accurately fulfill the reporting obligations associated with Form 1065.