What Is the Purpose of IRS Form 1065?

What Is the Purpose of IRS Form 1065?

The purpose of IRS Form 1065 is to report the income of a partnership, explains the Internal Revenue Service. Partnerships must file returns to report income, gains, losses and credits.

There are additional forms that may need to be filed with the 1065, says the IRS. Schedule D of Form 1065 is needed for the partnership to report sales or exchanges of capital assets, nonbusiness bad debt and capital gain distributions. Schedule K-1 of Form 1065 is needed to report the share of a partner's income, credits and deductions. Schedule M-3 of Form 1065 provides information regarding the partnership's financial statements.