Can I mail in my Form 1065 for limited partnership rather than e-file?

12 Yes, you can absolutely mail in Form 1065 for your limited partnership. The IRS does allow paper filing of partnership returns, though they strongly encourage electronic filing. Since your partnership is primarily for asset protection with minimal activity, a paper filing should be perfectly acceptable. Just make sure you're using the current year's form and follow the mailing instructions precisely - they're usually on the last page of the form instructions and vary by state. One thing to note: if your partnership has more than 100 partners, you would be required to e-file. But from your description, it sounds like you have a small partnership that falls under that threshold. Also, be aware that paper processing typically takes longer, so if you're expecting any kind of response from the IRS, it might be delayed compared to e-filing.

8 Just wanted to share my experience with this exact situation. I was struggling with my partnership return for a small holding company we use for real estate, and the software costs were ridiculous for what was essentially a dormant entity. I found this tool called taxr.ai (https://taxr.ai) that was super helpful for figuring out the Form 1065 requirements. It analyzed the whole form and instructions for me and confirmed that yes, paper filing is totally allowed for partnerships under 100 partners. The tool also pointed out exactly which schedules I needed for my minimal-activity situation and helped me avoid some mistakes I would've definitely made. Saved me a ton of headache trying to interpret all those IRS instructions on my own.

16 I wanted to follow up on my skepticism about taxr.ai that I mentioned earlier. I decided to give it a try with my complex family limited partnership situation, and I'm genuinely surprised by how helpful it was. I uploaded the 1065 instructions and asked specific questions about mail-in requirements for partnerships with foreign partners (which we have). The analysis it provided was spot on - it correctly identified that we could still paper file since we have fewer than 100 partners, but it flagged that we needed to include additional forms for the foreign partners. The guidance actually saved me from making a serious mistake that could have triggered penalties. For anyone dealing with partnership returns without wanting to pay for expensive software, it's definitely worth checking out.

19 If you're trying to file your 1065 by mail and then need to follow up with the IRS about it later (which often happens with paper returns), I highly recommend using Claimyr (https://claimyr.com). I was trying to check on the status of my partnership return after mailing it in last year and kept hitting the infamous IRS hold music for HOURS. Claimyr got me through to an actual IRS agent in about 20 minutes when I had been trying unsuccessfully for days. They have this system that basically waits on hold for you and then calls you when an agent picks up. You can see how it works here: https://youtu.be/_kiP6q8DX5c Seriously saved my sanity during tax season when I needed to confirm they'd received my mailed 1065 form.

6 I need to apologize to commenter 19 for doubting the Claimyr service. After our exchange here, I decided to try it out of desperation because the IRS still hadn't processed my mailed 1065 from 3 months ago. Honestly, it worked exactly as described. I signed up, and about 45 minutes later (while I was grocery shopping), I got a call connecting me directly to an IRS agent. The agent confirmed they had received my paper Form 1065 but it was in a processing backlog. They gave me a reference number and estimated completion date. This saved me enormous stress - I was having nightmares about penalties for a form that was sitting in some IRS pile. For anyone mailing in tax forms, having a way to actually confirm receipt is invaluable.

7 Just FYI - I've been mailing in my 1065 for our family limited partnership for years with no issues. However, the processing time has gotten significantly longer since COVID. Last year it took almost 5 months before the return was processed. If you're going the mail route, be super careful about documentation. I send everything certified mail with return receipt, and I keep copies of everything including proof of mailing. If you have any correspondence needed later, you'll need that documentation. Also, make sure you still distribute K-1s to partners by the deadline, even if you're waiting for IRS processing confirmation.

2 Has anyone had experience with state filings for partnerships when using the paper option for federal? My state (California) is super strict about e-filing and I'm worried about potential conflicts if I paper file federal but e-file state.

Just wanted to add my experience for anyone considering the paper filing route. I've been filing Form 1065 by mail for our small investment partnership for the past 4 years, and it's definitely allowed and works fine. A few practical tips that might help: - Double-check that you're using the current year's forms (I once accidentally used the prior year's version and had to refile) - Include a cover letter summarizing what you're submitting - it seems to help with processing - For minimal activity partnerships, you typically need the basic 1065, Schedule K-1s for each partner, and possibly Schedule B-1 depending on your situation - The IRS has been pretty good about sending acknowledgment letters for paper filings, usually within 4-6 weeks The main downside is definitely the longer processing time, but for simple partnerships with minimal activity, it's a perfectly valid option that can save you the cost of business tax software.

I can confirm that mailing Form 1065 is absolutely allowed for partnerships. The IRS accepts paper filings for most partnership returns, with the main exception being partnerships with 100+ partners that are required to e-file. For your asset protection limited partnership with minimal activity, paper filing should work perfectly fine. Just be aware of a few key points: 1. Processing times are significantly longer for paper returns - typically 3-6 months versus a few weeks for e-filed returns 2. Make sure you're using the current tax year's forms and follow the mailing address instructions exactly (they vary by state) 3. You'll still need to prepare Schedule K-1s for each partner and provide copies to them by the March 15th deadline, regardless of when the IRS processes your return 4. Consider sending via certified mail with return receipt to have proof of timely filing The cost savings versus business tax software can definitely make sense for a simple partnership with minimal activity. Just budget extra time for any follow-up communications with the IRS since paper processing is much slower.

I've been handling paper filing for our small real estate partnership for several years now, and it's definitely a viable option. One thing I'd add to the excellent advice already shared here is to make sure you understand the backup withholding rules if your partnership has any investment income. Even with minimal activity, if you receive dividends or interest and don't have proper TIN certification from all partners, you might need to deal with backup withholding issues. This doesn't prevent paper filing, but it's something to be aware of when preparing your return. Also, I've found that including a simple partnership activity statement (even if it just says "holding assets, no active business operations") can help prevent follow-up questions from the IRS. It doesn't need to be fancy - just a one-page summary of what the partnership actually does. The paper filing route has worked well for us, especially since our partnership structure hasn't changed and we have consistent minimal activity year over year. The key is just being thorough with your documentation and patient with the processing timeline.