What is Form 1065?
Definition Form 1065 is the U.S. return of partnership income, filed by partnerships and multi-member LLCs taxed as partnerships. It is an informational return that reports the entity's income and deductions and generates a Schedule K-1 for each partner. The partnership generally pays no income tax itself, so the K-1s carry each partner's share to their own returns.
Accurate 1065 preparation and timely K-1s are essential because every partner needs them to file, and partnership penalties for late or incorrect filing add up quickly.