Most affordable way to file form 1065 for small partnership business?

Thanks for the suggestions! I'm a bit nervous about the Free Fillable Forms since I have zero experience with partnerships. Do these budget options like FreeTaxUSA walk you through all the partnership-specific sections? And would the foreign partner aspect create any complications I should know about?

FreeTaxUSA and similar budget options do provide a guided interview process that walks you through the partnership-specific sections, which helps if you're unfamiliar with Form 1065. They'll prompt you for the necessary information rather than expecting you to understand the raw form. Regarding the foreign partner aspect, you'll need to make sure you properly report that on Schedule K-1. The software should guide you, but pay special attention to any foreign partner identifications and withholding requirements. Since your business didn't generate much income, many of the complex foreign reporting requirements may not apply, but you still need to properly identify foreign partners with their information.

That sounds interesting, but I'm confused about how it works with existing tax software. Does it replace something like TurboTax completely, or do you still need to purchase another program to actually file?

I'm a bit skeptical about using AI for tax forms, especially for partnerships. How does it handle the Schedule K-1 generation for foreign partners? That's usually where things get complicated with withholding requirements.

It actually works alongside your chosen filing method - so you can use it with the budget options like FreeTaxUSA or even with the free IRS fillable forms. It helps you understand what information goes where and explains the partnership tax concepts in plain English rather than tax jargon. For Schedule K-1 generation, it specifically addresses foreign partner requirements. It asks all the right questions about your foreign partners and explains what information you need to gather. The tool doesn't replace professional advice completely, but it made the process manageable enough that I could handle it myself instead of paying hundreds for an accountant.

How does this actually work? I've literally never been able to reach anyone at the IRS after trying for hours. Seems too good to be true that a third-party service could magically get through when the IRS phone lines are constantly jammed.

This sounds like a scam honestly. Why would I pay some random service to call the IRS when I can just keep calling myself? Plus, I doubt IRS agents even know how to handle complex partnership questions - they usually just refer you to the publications anyway.

It works by using an algorithm that analyzes call patterns and wait times to identify the optimal moments to place calls to the IRS. The service essentially does the waiting for you - it keeps dialing and navigating the IRS phone tree until it gets through to an agent, then calls you for the transfer. It's not magic, just smart technology that saves you from the frustration of constant busy signals and hours on hold. The IRS agents actually can be incredibly helpful when you finally reach them. While some might direct you to publications, I got connected with someone in the business tax department who dealt with partnership returns daily and provided specific guidance on foreign partner reporting that saved me from making costly mistakes. The service pays for itself if it helps avoid even one filing error.

Did you have to deal with any foreign partner issues with TaxHawk? That's my main concern since this is a foreign partnership.

I didn't have foreign partners specifically, so I can't speak directly to that aspect. TaxHawk did have sections for entering foreign addresses and tax identification numbers for partners, but I can't verify how comprehensive their guidance is for foreign partnership specifics. If foreign partnership reporting is your main concern, you might want to use one of the resources others mentioned to get clarity on those requirements first, then use TaxHawk for the actual filing. For what it's worth, their customer service was pretty responsive when I had questions about other partnership aspects.

This is dangerous advice. The business is registered in Delaware, which means it's a domestic partnership for US tax purposes regardless of partner nationality. Foreign-owned but US-registered partnerships absolutely have 1065 filing requirements.

@Daniel Price is absolutely correct here. Since your LLC is registered in Delaware, it s'considered a domestic partnership for US tax purposes regardless of where the partners are located. You definitely need to file Form 1065. The foreign "partnership aspect" you mentioned might be causing some confusion, but the key factor is where the entity is organized, not the residency of the partners. Given your situation with minimal sales and operating at a loss, I d'recommend sticking with one of the budget options mentioned earlier FreeTaxUSA, (TaxHawk combined) with getting proper guidance on the foreign partner reporting requirements. Don t'risk penalties by not filing - the IRS takes partnership filing requirements seriously even for loss situations.

This is really solid advice! I like the two-step approach you outlined. Quick question though - do you know if the AI tools like taxr.ai can help identify potential withholding requirements even for partnerships operating at a loss? I'm worried there might be some foreign partner reporting requirements I'm not even aware of that could apply regardless of profitability. Also, has anyone here actually used both the AI guidance tool AND spoken to an IRS agent through Claimyr for the same return? I'm wondering if there's overlap or if they complement each other well for complex foreign partner situations.