1065: U.S. Return of Partnership Income (2024)

Who files this form

Generally, every domestic partnership must file Form 1065 unless it has neither income nor expenditures treated as deductions or credits for federal income tax purposes. LLCs classified as partnerships for federal tax purposes have the same filing requirements.

Special rules include:

• Qualified opportunity funds: A partnership seeking certification must file Form 1065 and attach Form 8996, even if it has no income or expenses.
• Spouses who run a business together: Generally, spouses who jointly own and operate an unincorporated business and share its profits and losses must file. Eligible spouses who elect qualified joint venture treatment do not file Form 1065 for years the election is in effect.
• Foreign partnerships: Generally, filing is required if the partnership has U.S. source gross income or gross income effectively connected with a U.S. trade or business. The instructions provide exceptions with specific conditions.
• Qualified derivatives dealers: A partnership that is, or has a branch that is, a qualified derivatives dealer must file even if it otherwise would not need to.
• Religious or apostolic organizations exempt under section 501(d): These organizations must file to report taxable income.

A qualifying organization that elects under section 761(a) not to be treated as a partnership must file for the election year but generally does not need to file afterward. REMICs file Form 1066, and certain publicly traded partnerships treated as corporations file Form 1120 instead.

When it's due

• 2024 calendar-year partnership return: The instructions state that the return may be timely filed by March 17, 2025.
• Extension request for that return: File Form 7004 by the regular due date, March 17, 2025. Form 7004 can be filed electronically.

What you'll need

Have the partnership's name, address, employer identification number (EIN), business activity, business start date, and accounting method available, along with records supporting income, deductions, credits, and property basis.

Prepare these attachments when they apply:

• Schedule K-1: Attach one for every person who was a partner at any time during the tax year.
• Form 1125-A: For cost of goods sold.
• Schedule F (Form 1040): For net farm profit or loss.
• Form 4797: For gains or losses reported from that form.
• Form 4562: For depreciation when required, and for the section 179 deduction.
• Form 8825: For net rental real estate income or loss.
• Schedule D (Form 1065): For net short-term or long-term capital gains or losses.
• Supporting statements: For items such as other income, other deductions, and other rental activity expenses where the form requests a statement.

Other attachments depend on the partnership's activities and its answers on Schedule B. Keep copies of filed returns and records supporting the amounts reported.

How to file

Electronic filing

Partnerships must generally file Form 1065 and related forms and schedules electronically if they file 10 or more returns of any type during the tax year. This count includes information, income tax, employment tax, and excise tax returns. Partnerships with more than 100 partners must also file electronically.

Exceptions apply, including certain returns and religious exemptions. The IRS may grant a hardship waiver after a written request. For electronic filing help, visit IRS.gov/Filing or call the e-Help Desk at 866-255-0654.

Paper filing

Use the address that matches the partnership's principal business, office, or agency location and year-end assets.

Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, or Wisconsin:

If assets are less than $10 million and Schedule M-3 is not filed, send to:

Department of the Treasury

Internal Revenue Service Center

Kansas City, MO 64999-0011

If assets are $10 million or more, or Schedule M-3 is filed, send to:

Department of the Treasury

Internal Revenue Service Center

Ogden, UT 84201-0011

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, or Wyoming:

For any asset amount, send to:

Department of the Treasury

Internal Revenue Service Center

Ogden, UT 84201-0011

A foreign country or U.S. territory:

For any asset amount, the listed address is:

Internal Revenue Service

P.O. Box 409101

Ogden, UT 84409

The instructions separately state that returns with Schedule M-3 must be filed at the Ogden Internal Revenue Service Center.

Delivery and signature

For an IRS-designated private delivery service, use the street address available at IRS.gov/PDSStreetAddresses. Private delivery services cannot deliver to P.O. boxes.

A partner or LLC member must sign the return. Special signature rules apply to fiduciaries, entity partners, and administrative adjustment requests.

Common mistakes

• Putting nonbusiness items on page 1: The form cautions that lines 1a through 23 must include only trade or business income and expenses.
• Deducting oil and gas depletion on line 17: The form specifically says not to deduct it there.
• Overlooking the electronic filing requirement: The instructions remind partnerships that the 10-return threshold counts returns of any type, not just income tax returns. Certain exceptions apply.
• Sending a private delivery service package to a P.O. box: The instructions warn that these services cannot deliver to P.O. boxes. Use the U.S. Postal Service for an IRS P.O. box address.

Questions people ask

Does the partnership generally pay income tax itself?

Generally, no. Form 1065 is an information return. Partnership profits or losses pass through to the partners, who must include partnership items on their own tax or information returns.

Do I need a Schedule K-1 for someone who left during the year?

Yes. Attach a Schedule K-1 for each person who was a partner at any time during the tax year.

Can a small partnership skip Schedules L, M-1, and M-2?

Yes, if it meets all four conditions in Schedule B, question 4: total receipts are less than $250,000; year-end assets are less than $1 million; Schedules K-1 are filed with the return and furnished to partners by the return's due date, including extensions; and the partnership is neither filing nor required to file Schedule M-3. It also does not have to complete item F on page 1 or item L on Schedule K-1.

How do I request more time to file?

File Form 7004 by the partnership return's regular due date. Form 7004 can be filed electronically.

Can my paid preparer discuss the return with the IRS?

Yes, if the partnership checks “Yes” in the signature area. This authorizes the individual preparer who signs the return to discuss processing questions, provide missing information, and respond to certain notices. It does not authorize the preparer to bind the partnership or otherwise represent it before the IRS.

Official sources

• https://www.irs.gov/pub/irs-prior/i1065--2024.pdf
• https://www.irs.gov/pub/irs-prior/f1065--2024.pdf