Form 1065

Form 1065 (U.S. Return of Partnership Income) is the federal tax return filed annually by partnerships and multi-member LLCs taxed as partnerships to report the entity's income, deductions, gains, losses, and credits to the Internal Revenue Service. Unlike C-Corporations, partnerships are pass-through entities — the partnership itself does not pay federal income tax, but instead allocates income and losses to individual partners via Schedule K-1 (Form 1065), which each partner then reports on their personal tax return. Form 1065 is due on March 15 of the year following the tax year (or the 15th day of the third month after the fiscal year end), with a 6-month extension available via Form 7004. The penalty for late filing under IRC Section 6698 is $220 per partner per month (or fraction thereof) of delinquency, up to 12 months — meaning a 4-member LLC filing 6 months late faces penalties of $5,280. Form 1065 consists of multiple pages and schedules: Schedule B (entity information and accounting method), Schedule K (partner's distributive share items), Schedule L (balance sheet), Schedule M-1 or M-3 (reconciliation of income per books to income per return), and supplemental schedules for foreign transactions, asset depreciation, and at-risk limitations. Multi-member LLCs with foreign members have additional complexity — they must compute effectively connected income for Section 1446 withholding and may need to file Form 8804. doola prepares and files Form 1065 for multi-member LLCs, ensuring proper allocation of income per the operating agreement and timely issuance of K-1s to all members.