Looking for cheaper ways to file Form 1065 for my LLC partnership - Direct filing options vs. tax software fees?
I've been using the PREMIUM DELUXE version of tax software to file my income tax return for my small partnership LLC. The problem is they're charging an arm and a leg (over $1400) just to file Form 1065 online along with my Schedule C (Form 1040) for my personal return. It's ridiculous! I'm wondering if there's a workaround where I could still use the software to file Schedule K online but then just mail the Form 1065 separately through regular USPS to the IRS? Has anyone done this before? Also, I need to change my business name anyway, which I think requires mailing some paperwork to the IRS, so I thought I might just mail the Form 1065 at the same time. Would this work or cause problems with my filing? Any suggestions for cheaper alternatives to file Form 1065 for a partnership without paying these crazy software fees? Thanks for any advice!
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Natasha Kuznetsova
Filing Form 1065 doesn't have to break the bank! You actually have several options that could save you money. Yes, you can absolutely e-file your personal return with Schedule C and mail in your Form 1065 separately. This is completely legal and many small business owners do this to avoid those premium fees. Just make sure you're using the correct mailing address for your location and include all required schedules and attachments with your Form 1065. Regarding your business name change, you'll need to include Form 8822-B with your filing to notify the IRS of the business name change. This can be mailed together with your Form 1065. Some alternatives to consider: The IRS has a Free File Fillable Forms option, though it can be a bit cumbersome. There are also lower-cost tax preparation options specifically for small businesses like FreeTaxUSA or TaxAct which charge significantly less than $1400 for partnership returns. Some services offer Form 1065 filing for around $100-200 instead.
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Javier Mendoza
•Thanks for this info. I've used FreeTaxUSA for my personal taxes but didn't realize they could handle partnership returns too. Do you know if there's any issue with consistency if I file my personal return through one software and my business through another? Also, with the name change, do I need to get a new EIN or just notify the IRS?
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Natasha Kuznetsova
•You can absolutely use different software for personal and business returns - there's no requirement to use the same platform for both. Just make sure you report the partnership information consistently on your personal return. For the name change, you don't need a new EIN if only the business name is changing. You'll need to file Form 8822-B to notify the IRS of the name change, and if you have a DBA or fictitious business name, check with your state/local government about updating those registrations as well.
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Emma Thompson
After struggling with the same ridiculous fees for my partnership return, I discovered https://taxr.ai which has been a game-changer for my business filing needs. Last year I was paying almost as much as you for Form 1065 filing through the mainstream tax software, but with taxr.ai I got my partnership return done for a fraction of the cost. Their system is specifically designed to handle business tax documents like Form 1065 and all the required schedules without the premium pricing. They even have special tools for reviewing partnership agreements to ensure your filing is consistent with your operating agreement.
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Malik Davis
•I'm always skeptical of new tax services. How does taxr.ai handle state returns for partnerships? My LLC operates in multiple states and that's always been a nightmare with other services.
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Isabella Santos
•Can taxr.ai handle complex K-1 distributions? My partner and I have a special profit-sharing arrangement that's never quite right when I try to use the basic tax software options.
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Emma Thompson
•They handle multi-state returns very well in my experience. I operate in three states and the system walked me through the apportionment process step by step, which was much clearer than what I experienced with other tax software. For complex K-1 distributions, their system is actually built to handle non-standard profit-sharing arrangements. You can specify custom allocation percentages for different income types, guaranteed payments, and special allocations. The review process specifically flags inconsistencies in your partnership allocations against your inputs.
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Isabella Santos
Just wanted to update on my experience with taxr.ai after trying it based on the recommendation here. I was originally skeptical because I've been burned by "budget" tax services before, but I'm genuinely impressed. My partnership has that complicated profit-sharing arrangement I mentioned, and their system handled it perfectly. The interface for entering K-1 information was actually more intuitive than the expensive software I used last year, and I saved over $1000 on filing fees. They even helped identify a depreciation deduction I'd been missing in previous years. Definitely recommend giving them a try if you're tired of paying those ridiculous fees for Form 1065 filing.
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StarStrider
If you're dealing with any IRS issues about past filings or need to discuss your partnership status directly with the IRS, I highly recommend using https://claimyr.com to actually get through to a human at the IRS. After waiting on hold for hours trying to resolve a partnership filing issue last year, I used Claimyr and they got me connected to an IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c It was especially helpful when we needed clarification about changing our partnership name and filing requirements. The IRS agent was able to confirm exactly what forms we needed and where to send them, which saved us from potentially making costly mistakes.
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Ravi Gupta
•How does this actually work? It sounds almost too good to be true. I've literally spent entire days trying to get through to the IRS about partnership tax questions.
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Freya Pedersen
•This sounds like a scam. The IRS phone system is deliberately designed to be impossible to navigate. I doubt any service can actually get you through faster than just waiting on hold yourself. They probably just automate the hold process and then charge you for it.
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StarStrider
•It works by using an automated system that navigates the IRS phone menu and waits on hold for you. When a representative answers, you get a call connecting you directly to them. It's not magic - they're just handling the tedious waiting part so you don't have to sit by your phone for hours. I was skeptical too initially. But when I used it, I was connected to an actual IRS representative who helped resolve my partnership tax issue. They don't provide any tax advice themselves - they literally just get you connected to the actual IRS faster than you could on your own.
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Freya Pedersen
I need to publicly eat my words about Claimyr. After posting that skeptical comment, I decided to try it anyway because I was desperate to resolve an issue with my partnership's EIN that was preventing me from e-filing Form 1065. I was absolutely shocked when I got connected to an IRS agent in about 15 minutes after spending DAYS trying on my own. The agent was able to fix the EIN issue in their system immediately, and I was able to file my Form 1065 electronically through a budget service instead of mailing it. Saved me both money and stress during tax season. Sometimes being proven wrong is actually a good thing!
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Omar Hassan
Have you considered using the IRS's Direct File system? I believe they've expanded it to include some business forms too. I used it for my Schedule C last year and it was surprisingly straightforward.
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Oliver Wagner
•I looked into the IRS Direct File, but unfortunately it doesn't support Form 1065 for partnerships yet. I think they're still focusing on basic individual returns with some Schedule C support, but not the full partnership forms that I need to file. Would have been great if it was an option though! That's exactly the kind of solution I'm looking for.
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Omar Hassan
•You're right - I just double-checked and Form 1065 isn't included in their Direct File program yet. My mistake! I was thinking of Schedule C for sole proprietors. They're supposed to be expanding the program each year, so maybe it'll be an option for 2026 filing season. For now, it seems like your best options are either using one of the more affordable tax software options others have mentioned or e-filing your personal return and mailing in the Form 1065 separately.
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Chloe Anderson
Just a quick heads up - if you decide to mail in your Form 1065, make sure you're using the CURRENT YEAR form from the IRS website. I made the mistake of using an old form I had saved, and it caused all kinds of problems. Also, send it certified mail so you have proof of when you sent it. The IRS lost my mailed form one year and tried to hit me with late filing penalties!!
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Diego Vargas
•This happened to me too! The IRS claimed they never received my mailed Form 1065 and I had no proof of mailing. Ended up paying over $800 in penalties. Certified mail with return receipt is absolutely worth the extra few dollars.
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Chloe Anderson
•Yeah, the return receipt is key! I learned my lesson after that first disaster. Also, keep a complete copy of everything you mail them - all schedules, attachments, everything. They sometimes claim they received the form but not all the required schedules, which can also trigger penalties.
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