Filing for a partnership with no sales - How to submit Form 1065 online for new business?
Title: Filing for a partnership with no sales - How to submit Form 1065 online for new business? 1 Hello everyone! My partner and I formed a partnership back in October, and we're completely lost about our tax filing obligations. We haven't actually launched our small craft business yet - literally all we've done is purchase a $350 printer and some basic supplies. We have a business name and partnership agreement, but no actual sales or revenue yet. I've heard we still need to file a Form 1065 even with zero income, but I have no idea how to submit this online or if we even need to bother since we're essentially pre-operational. Do partnerships with no sales or income still need to file? And if so, what's the easiest way to submit a Form 1065 online? This is our first business venture and we're trying not to mess up the tax stuff right from the start! Any advice would be so appreciated! Thanks in advance :
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Savannah Vin
15 Yes, you do need to file Form 1065 even if you haven't made any sales yet. The IRS requires all partnerships to file this form regardless of activity level or profit status. Since you've formed the partnership and purchased business assets (the printer), you technically began operations. When filing with zero or minimal activity, you'll report the printer as an asset and may be able to depreciate it. You'll file a relatively simple return showing no income but possibly some startup expenses. This establishes your first year of business existence with the IRS, which is important for your records. The easiest way to file online is through an IRS-approved e-file provider. Popular tax software like TurboTax Business, H&R Block Business, or TaxAct all support Form 1065 e-filing. You can also use a tax professional who specializes in small businesses.
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Savannah Vin
•8 Thanks for the info! I'm still confused about one thing though - do we each need to file a Schedule K-1 as well? And what happens if we miss the deadline for filing the 1065?
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Savannah Vin
•15 The 1065 actually generates the K-1s that you'll each receive - you don't file the K-1s separately, they're part of the 1065 package. The partnership files the 1065, which includes preparing Schedule K-1 for each partner, then you each report the K-1 information on your personal tax returns. If you miss the deadline (March 15 for calendar-year partnerships), you could face penalties - about $210 per partner per month late, for up to 12 months. However, if you have a reasonable cause, you can request penalty abatement. If you know you'll miss the deadline, file Form 7004 for an automatic 6-month extension.
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Savannah Vin
12 After struggling to figure out how to file our partnership's 1065 with minimal activity last year, I discovered https://taxr.ai and it was seriously a game-changer for our small marketing partnership. Our situation was similar - we had formed the partnership but only had a few minor expenses and no revenue yet. The tool analyzed our situation and guided us through exactly what we needed to report on the 1065. What I found especially helpful was that it explained how to properly classify our pre-revenue expenses and setup costs - things like our business license fees and equipment purchases. It even walked me through how to e-file without paying the ridiculous fees some of the big-name software charges.
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Savannah Vin
•4 How user-friendly is this service for total beginners? I'm in the exact same situation and honestly have no idea what I'm doing. Can it handle partnerships in all states? I'm in Nevada if that matters.
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Savannah Vin
•17 Sounds interesting but I'm skeptical. Does it actually help with the e-filing process itself or just give you guidance? My main concern is actually submitting the form correctly to the IRS, not just filling it out.
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Savannah Vin
•12 It's super beginner-friendly - that's why I loved it. The interface walks you through everything step-by-step with plain English explanations, not tax jargon. It asks simple questions about your business situation and then tells you exactly what to enter where. It absolutely works for Nevada partnerships - state doesn't matter for federal filing requirements. Yes, it handles the actual e-filing process too! That was my biggest concern as well. It prepares the form and submits it directly to the IRS through their approved e-file system. You get confirmation when it's accepted, which gave me huge peace of mind knowing it was done correctly.
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Savannah Vin
17 Just wanted to update after trying taxr.ai for our partnership filing. I was the skeptic who wasn't sure if it would actually help with the e-filing process. Well, I'm eating my words now! Not only did it make the whole thing super straightforward, but it actually saved us money. We have a small photography partnership that hadn't started operations yet (just bought camera equipment), and the system correctly identified our situation as a "dormant partnership with assets." It walked me through exactly how to report our equipment purchases properly, and I was able to e-file directly. Took maybe 30 minutes total and the confirmation from the IRS came through the next day. Definitely recommend for other new partnerships in similar situations!
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Savannah Vin
3 If you're struggling to get clear answers from the IRS about your partnership filing, I totally feel your pain. I spent WEEKS trying to get through to someone at the IRS last year for our partnership questions. After getting disconnected 9 times, I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c They basically hold your place in the IRS phone queue and call you when an agent is about to answer. I was honestly shocked when I got a call back with an actual IRS agent on the line! I was able to confirm exactly what we needed to file for our zero-revenue partnership and got answers about asset depreciation for our initial purchases.
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Savannah Vin
•22 Wait, how does this actually work? Do they have some special connection to the IRS? Seems too good to be true that they can somehow get you to the front of the phone line when I can never get through.
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Savannah Vin
•14 This sounds like a scam. The IRS phone system is notoriously bad and I find it hard to believe any service can game the system. Has anyone else actually used this successfully or is this just marketing?
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Savannah Vin
•3 They don't have special access to the IRS - they use automated technology to wait in the phone queue for you. It's basically like having someone else wait on hold instead of you. When their system detects a human IRS agent has answered, it immediately connects you to the call. I was skeptical too before trying it. It's not about "gaming the system" or cutting lines - you still wait your turn, but you don't have to be the one sitting there listening to hold music for hours. They just notify you when your turn actually comes up. I documented my entire experience with it - waited 3.5 hours total but only spent 20 minutes of my actual time because they handled the hold time.
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Savannah Vin
14 I need to publicly apologize for calling Claimyr a scam. After my partnership's tax deadline was approaching and I still couldn't get through to the IRS about our filing questions, I reluctantly tried it. The service actually works exactly as described. I got a call back after about 2 hours (during which I could do other things), and was connected with an IRS agent who confirmed that yes, we needed to file Form 1065 even with no revenue, and helped clarify exactly how to report our pre-operational expenses. My partner and I were able to get our 1065 filed correctly and on time. For anyone forming a partnership with questions that online research can't answer clearly, being able to actually speak with the IRS is invaluable. Saved us from potentially making costly mistakes.
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Savannah Vin
5 Another thing to consider - if your partnership agreement has special allocations (like one partner contributed the printer so gets a larger percentage of future profits), you MUST file the 1065 to establish this from the beginning, even with no income. I learned this the hard way! Basic online tax software can handle simple partnerships, but if you have special allocations or guaranteed payments, you might want to consult with a tax professional for your first filing.
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Savannah Vin
•9 Do the special allocations have to be documented somewhere specific? We have a 60/40 split because I put in more startup money, but it's just in our partnership agreement, not any tax forms yet.
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Savannah Vin
•5 Yes, the special allocations should be documented in your formal partnership agreement first, but they also need to be reflected on your tax return. On Form 1065, you'll indicate the profit/loss percentage for each partner, and this should match your agreement. The K-1s generated with your 1065 will show each partner's specific allocation percentages. This establishes your baseline with the IRS, so if you ever get questioned about why one partner is receiving 60% while another gets 40%, you can point to the consistent history starting from year one.
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Savannah Vin
20 Quick question guys - I'm using TurboTax Business for our partnership filing with no income. Does anyone know if I still have to pay the full price even though we have basically nothing to report?
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Savannah Vin
•7 I used TaxAct last year for our no-income partnership and it was WAY cheaper than TurboTax, like 1/3 the price. Same e-filing capability and it worked fine for a simple return.
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