Partnership Tax Preparation – Form 1065 & K-1 Service

Description

Managing a multi-owner business means dealing with Form 1065 and K-1s. The IRS wants that filing by March 16, and they want accurate K-1s in every partner’s hands by then too. Miss that deadline or get the numbers wrong, and penalties start stacking fast. Your partners can’t even file their own taxes correctly until you get them what they need.

How the penalties actually work

The IRS charges roughly $260 per partner, per month you’re late. That’s not a typo. Per partner. Per month. A 10-partner LLC that files three months late owes nearly $8,000 in penalties before anyone even looks at what you might owe in actual taxes.

But the money isn’t even the worst part.

Late or wrong K-1s force your partners to delay their personal returns. Or guess. Or file amendments later. Some of them will call you. Repeatedly. Others will just quietly resent you and wonder if this partnership was a mistake.

And if you have partners in multiple states? Each state wants its own filing. Some want you to withhold taxes for out-of-state partners. Skip those requirements and a state can administratively dissolve your business. That’s not a scare tactic. It happens.

The IRS built these penalties to be brutal because one partnership error creates problems for every single partner. They want compliance. They get it through pain.

The filing itself

Form 1065 isn’t an income tax return. It’s an informational return. Partnerships are pass-through entities, so the business doesn’t pay income tax directly. The IRS uses Form 1065 to track how income gets divided up among partners, then each partner reports their share on Schedule K-1.

Without this filing, the IRS can’t track allocations. Partners can’t file their 1040s accurately without their K-1s. Everyone’s stuck.

What This Service Does:

The tax professionals we work with will handle the full federal 1065, generate accurate K-1s for every partner, and deal with multi-state filings so you’re not trying to figure out which states actually require something from you.

For the federal return, that includes the balance sheets and the schedules that reconcile book income with tax income. For K-1s, they make sure the split of profits, losses, and capital is calculated correctly so your partners can file without worrying about an audit.

If you have nexus in multiple states, they can prepare those returns too. Many states also require their own version of the K-1, and handle those.

They will e-File everything. It’s mandatory for partnerships with over 100 partners and smart for everyone else because you get immediate confirmation.