what is form 1065 u s return of partnership income 
form 1065 u s return of partnership income is an internal revenue service irs tax document used to declare the profits losses deductions and credits of a partnership a partnership doesn t pay income taxes rather any profit or loss is passed on to the partners who are responsible for taxes form 1065 provides the irs with a snapshot of a company s financial status for the year the partners must report and pay taxes on their shares of income from the partnership on their individual tax returns and pay income tax on their earnings regardless of whether earnings were distributed in addition to form 1065 partnerships must submit schedule k 1 a document prepared for each partner who can file form 1065 u s return of partnership income all partnerships must file form 1065 u s return of partnership income this includes a general partnership a limited partnership or a limited liability corporation llc classified as a domestic partnership and headquartered in the u s the irs defines a partnership as two or more people carrying a trade or business together 1partnerships and llcs are pass through entities where any profits or losses pass directly to the partners or llc members individual partners report and pay taxes on their share of the business income on their personal tax returns using schedule k 1 and then file this form with their personal tax returns irs form 1040 the partnership or llc then files a single irs form 1065 but the business does not pay the income tax 23foreign partnerships with income in the u s must also file form 1065 however foreign partnerships earning less than 20 000 in the country or partnerships that receive less than 1 of their income in the u s may not have to file 4nonprofit religious organizations classified as 501 d also file this form they must show that profits were given to their members as dividends regardless of whether they were distributed 4partnerships may have to file additional schedules with form 1065 they include schedules l m 1 and m 2 5