165PA Schedule K-1: SchedK-1 Resident and Part-Year Resident Partner's Share of Arizona Partnership Adjustment (2025)

Who files this form

A partnership prepares this schedule after an IRS audit when it passes the assessment through to its partners. Partners use it to report their share of the Arizona partnership adjustment on an amended Arizona income tax return.

The schedule provides reporting instructions for resident and part-year resident individual partners, and resident estate and trust partners. Corporate partners must use Form 165PA, Schedule K-1(NR) instead.

When it's due

Submit your 2025 Arizona amended return within 150 days of the IRS final determination date shown on line 1. Add 150 days to that date to find your deadline.

If the deadline falls on a Saturday, Sunday, or legal holiday, the return is timely if it is postmarked the next business day.

What you'll need

Use your 2025 Form 165PA, Schedule K-1 for the IRS final determination date on line 1 and your adjustment amount on line 3.

The amended return used to report the adjustment depends on the partner:

• Resident and part-year resident individuals: Form 140X.
• Resident estates and trusts: An amended Form 141AZ.

The schedule also calls for the partner’s identifying number, the partnership’s EIN, both parties’ names and addresses, and the tax-year information. If the schedule is marked “Amended,” line 2 asks for the date the original Form 165PA was filed.

How to file

Report the adjustment on your amended Arizona return and submit that return to the department. The supplied text does not give a mailing address or e-filing instructions.

Resident and part-year resident individuals:

• Report a positive adjustment on Form 140X, line 23, Additions to Income.
• Report a negative adjustment on Form 140X, line 25, Subtractions from Income, as a positive number.

Resident estates and trusts:

• Report a positive adjustment on an amended Form 141AZ, Schedule B, line B3, Other Additions to Federal Taxable Income.
• Report a negative adjustment on an amended Form 141AZ, Schedule B, line B9, Other Subtractions from Federal Taxable Income, as a positive number.

Common mistakes

• Using this schedule to distribute income from Form 165. The form says not to use it for that purpose.
• Using this schedule for a corporate partner. Corporate partners must use Form 165PA, Schedule K-1(NR).
• Replacing the original income amount when “Original” is checked. This adjustment is in addition to the amount passed through on Form 165, Schedule K-1. Do not replace that original amount.
• Adding an amended adjustment to the earlier adjustment. When “Amended” is checked, the new adjustment replaces the amount previously passed through on Form 165PA, Schedule K-1.
• Checking “Amended” without a prior schedule. Check it only if a Form 165PA, Schedule K-1 for the same year was previously provided to the partner.
• Using the wrong calendar year for a fiscal-year partnership. If you file on a calendar-year basis, report the adjustment on your amended return for the calendar year in which the partnership’s fiscal year ends.

Questions people ask

Why did I receive this schedule?

You received it because the IRS audited a partnership in which you are a partner, and the partnership passed the assessment through to its partners. The schedule helps you report your share of the Arizona adjustment.

Does an “Original” schedule replace the amount on my Form 165, Schedule K-1?

No. The adjustment is in addition to the amount passed through on Form 165, Schedule K-1.

What changes if the schedule is marked “Amended”?

The adjustment replaces the amount previously passed through on Form 165PA, Schedule K-1.

How do I enter a negative adjustment?

Enter it as a positive number on the applicable subtraction line: Form 140X, line 25, for resident and part-year resident individuals, or amended Form 141AZ, Schedule B, line B9, for resident estates and trusts.

Official sources

• https://azdor.gov/forms