# Form 1065: Partnership Return

Country: United States
When: 15 March (calendar year): 15th day of 3rd month after year-end. For the 2025 tax year the due date was 16 March 2026 because 15 March was a Sunday. For the 2026 tax year it is Monday 15 March 2027. Form 7004 gives an automatic six-month extension.

Annual federal information return for partnerships and multi-member LLCs taxed as partnerships. Due 15 March for calendar-year filers. 6-month extension via Form 7004 to 15 September. A partnership files one return for the entity and each partner reports their share from the Schedule K-1 on their own return. Schedules K-2 and K-3 have expanded filing exceptions starting with tax year 2024, so check whether they are needed for the partnership.

## Who this applies to

- Partnerships (general, limited, LLP)
- Multi-member LLCs (default partnership taxation)
- Joint ventures unless excluded from Subchapter K
- Entities that elected partnership treatment by default and have two or more members

## What to file

Form 1065 with K-1 for each partner, P&L, balance sheet, M-1/M-2 reconciliations, partner basis schedules.

## How to file

Electronically via authorized e-filers. Distribute K-1s to partners by 15 March.

## Payment due

Partnership doesn't pay federal income tax. Partners pay on their K-1 share via personal Form 1040 (or partner-level corporate return). A partnership pays no federal income tax at the entity level, but it may owe state composite or withholding tax for non-resident partners. Late or incorrect Schedules K-1 can also carry the information return penalty of up to $340 per statement for 2026.

## What happens if you miss it

Late filing: $255 per partner per month for returns due after 31 December 2025, for up to 12 months. CPAR (Centralized Partnership Audit Regime) since 2018 means partnership-level adjustments can be assessed at entity level.

## Submission checklist

- Reconcile book income to ordinary business income
- Calculate guaranteed payments to partners
- Update each partner's capital account and basis
- Generate K-1 for each partner
- File electronically
- Distribute K-1s by 15 March

## Documents you need

- Partnership agreement and any amendments
- Capital account and basis records for each partner
- Year-end trial balance and balance sheet
- Guaranteed payment and distribution records
- Partner names, addresses and TINs

## Common mistakes to avoid

- Treating LLC as corporation by accident (default is partnership for multi-member)
- Missing K-1 distribution deadline
- Not tracking inside vs outside basis for partners
- Forgetting state partnership tax / withholding for non-resident partners

Source: https://www.irs.gov/forms-pubs/about-form-1065