What federal income tax forms do I file if I own a partnership?Published:
If your business is owned by multiple people and you haven’t registered as a corporation, you must file as a partnership. The 2010 federal tax forms you need are the 1065 series.
The reason these tax forms are separate is because you must claim your own taxes as well as each partner’s. You must also claim losses and profits from the business on the form. This keeps the business partners in check with each other. It also helps the IRS see if there are potential problems and if you need an audit.
If you’ve registered your business as a corporation, you must use the 1120 set of 2010 federal tax forms. They are taxed differently, generally by taxing both profits as well as stocks.
It’s best to fill out the 1065 series of 2010 federal tax forms with all partners present. This is so there are no major differences. These can be costly and lead to audits and delays.
Gather all the information regarding business transactions over the year. You need detailed income records and taxed income for the business. For your personal taxes, you need any income you gained from the business and taxes imposed on your income. Also needed for these 2010 federal tax forms is how much you put into the business.
After filling out the 1065 tax forms for your own information, you also need to give info about the nature of your business. This includes each partner’s own income earned from the business.
If need be, fill out Section K-1 of the tax forms. It lets you claim your total personal income, including money gained elsewhere besides the business.
After filling these 2010 federal tax forms out, send them to the IRS. Recheck the numbers before sending them with your partners to avoid hang-ups and audits.