Form 1065 U.S. Return of Partnership Income
INSTRUCTIONS: U.S. RETURN OF PARTNERSHIP INCOME (FORM 1065)
IRS Form 1065 is filed by a business partnership to report on their income for the tax year. A partnership is generally defined as most unincorporated businesses comprised of two or more people working together. This form can be obtained from the IRS website or their local office.
U.S. Return Of Partnership Income 1065 Step 1: Enter the name and address of the business in question at the top of the form. Where indicated, list the type of service provided, how long the business has been in operation and the classification of the business under the North American Industry Classification System (NAICS).
U.S. Return Of Partnership Income 1065 Step 2: The first section concerns income only related to the trade or business in question. Note all payments and sales as directed.
U.S. Return Of Partnership Income 1065 Step 3: The second section is where deductions or costs of doing business, such as employee salaries, should be entered.
U.S. Return Of Partnership Income 1065 Step 4: Line 8 will have your total income and Line 21 your total deductions. Subtract the latter from the former to determine your net income and enter it in line 22.
U.S. Return Of Partnership Income 1065 Step 5: The second page, "Schedule B," concerns other information about your business. You should be ready to answer questions about any partners, changes in the structure of your business and other items covered on this page.
U.S. Return Of Partnership Income 1065 Step 6: The "Schedule K" section covers partners' shares in the business, adjustments to the interest rates and related matters. This must be completed by every partnership.
U.S. Return Of Partnership Income 1065 Step 7: Attach a Schedule K-1 form describing each partner's individual portion of the income information noted in Schedule K.
U.S. Return Of Partnership Income 1065 Step 8: Subsequent forms in this package (Schedule L, M-1 and M-2) must only be filled out by partnerships whose total assets at the end of the year equaled or exceeded a million dollars.
U.S. Return Of Partnership Income 1065 Step 9: A general partner should sign and date the form. The form may be submitted electronically or to the appropriate mailing address listed in the instructions.