The IRS describes a Partnership as a relationship between two or more who join together to carry on a trade or business. Each partner contributes money, property, labor, or skills, and each expects to share in the profits and losses. A partner can be an individual person, corporation, trust, estate, or another partnership. All general partners are personally liable for partnership liabilities. There can be no limited partners in a general partnership. If you are starting a business you will want to check out our information regarding choosing the correct business entity.

Every partnership must file a Partnership Tax Return called a Form 1065, regardless of the amount of income or loss. If the partnership does not receive income and does not incur any expenses, the partnership is not required to file a return. However, the partnership is considered terminated when business or financial operations are no longer carried on by any of its partners. The deadline for filing a Form 1065 is the 15th day of the 4th month following the close of the tax year. A Form 7004 can be filed for a tax extension with an additional 6 month extensions available after the first tax extension.

A Partnership is required to provide each partner with a copy of their Schedule K-1 by the tax return due date for the Form 1065. Huey & Associates, P.C. can work with you to ensure that you file an accurate and timely corporate tax return. Some of the services we offer with filing your Form 1120 include:

• Computer software analysis of all returns to ensure math and common mistakes are avoided.
• We will do a tax analysis of your return and sit down with you for some tax planning for the next year.
• Provide you with an easy to use Organizer to gather your information together at the beginning of the year.
• Discuss the final results of the Tax Return and if needed file a Tax Extension for you.
• Discuss the effect if any on your personal 1040 Income Tax Return.
• Provide K-1 copies to be sent to the individual partners in the partnership.
• Provide copies of your tax return for your records and electronic storage of a copy of your Tax Return for quick and easy access for future requests.