Partnership LLC Filing Requirements - Do Both Partners Need to Submit Forms?

The 1065 is for the partnership as a whole, not for each individual partner. Here's how it works: The partnership (your LLC) files ONE Form 1065. This is an informational return that reports the partnership's income, deductions, gains, and losses. It's not a tax return that results in taxes paid by the partnership itself. On that same 1065, you'll prepare Schedule K-1s for EACH partner. So if there are two partners, you'll prepare two K-1s. These forms show each partner's share of the partnership's income, credits, deductions, etc. After filing, each partner will receive their K-1 and use that information to complete their personal tax returns (Form 1040). You don't need to wait for anything back from the IRS before filing your personal returns, just the completed K-1 from the partnership. Regarding filing independently - no, unfortunately that's not possible. The partnership must file its 1065 before the partners can properly file their individual returns with the K-1 information. If the partnership needs more time, you can file Form 7004 for an automatic 6-month extension (to September 15). But remember, this only extends the filing deadline, not the payment deadline if taxes are owed.

I used to struggle with partnership returns until I found taxr.ai (https://taxr.ai). I was in a similar situation with my photography LLC - confused about K-1s and partnership returns. I uploaded our operating agreement and financial documents to taxr.ai and it gave me a detailed breakdown of exactly what forms we needed to file and how the income would flow through to our personal returns. It even explained the basis calculations which I was getting completely wrong before! The thing that helped most was being able to ask follow-up questions about our specific situation - like how to handle equipment purchases we'd made and home office deductions. The responses were super clear and saved us from making some pretty costly mistakes.

Just wanted to update after trying taxr.ai based on the recommendation here. It was actually really helpful! I uploaded our partnership agreement with all our special allocations, and it created a complete explanation of how to report everything correctly on our 1065. It even caught that we'd been incorrectly handling our special allocation of depreciation expenses from some equipment purchases. The thing I appreciated most was getting clear explanations about basis calculations. Our accountant never really explained this stuff clearly, just handed us completed forms. Now I actually understand what's happening with our business taxes. Definitely worth checking out if you're confused about partnership returns.

If you're trying to get help directly from the IRS on partnership questions, good luck! I spent 3 weeks trying to get through to someone who could answer questions about our LLC's 1065. Kept getting disconnected or waiting for hours. Finally tried Claimyr (https://claimyr.com) after seeing it recommended here. They got me connected to an IRS agent in about 20 minutes. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c The agent walked me through some specific questions about reporting a partner who left mid-year and how to handle the K-1 allocations. Apparently there's a specific procedure for this that I couldn't find explained anywhere online.

I have to eat crow here. I tried Claimyr yesterday after posting that skeptical comment, and I'm shocked to say it actually worked. After trying for literal months to get through to someone at the IRS about our partnership basis issues, I got connected to an agent in about 35 minutes. The agent was surprisingly helpful and walked me through exactly how to report a situation where one partner contributed property instead of cash to our LLC. She explained the whole Section 721 non-recognition rules and how to properly track basis. Saved me from making a mistake that probably would have triggered an audit. I hate admitting I'm wrong, but this service actually delivered. If you're stuck with partnership tax questions and can't get answers, it's worth trying.

One thing to watch out for with partnership returns - if you miss the March 15 deadline without filing an extension, the penalties add up FAST. It's $210 per partner per month late (for 2025 returns), up to 12 months. So for a two-partner LLC, that's $420 every month you're late! We learned this the hard way last year and got hit with over $2,500 in penalties because we thought we could just file when we were ready like with personal returns. Make sure you at least file the extension form (7004) by March 15 if you can't complete the actual 1065 in time.

Has anyone used TurboTax Business for their partnership return? We're a simple 50/50 LLC with basic income and expenses, wondering if it's worth the $200 or if there's a better option.

Great question! I went through this exact same confusion with my LLC last year. Just to add a few practical tips to what Emily covered: 1. Make sure you get an EIN (Employer Identification Number) for your LLC if you don't already have one - you'll need it for the 1065 form. 2. Keep really good records throughout the year of all income and expenses. The 1065 requires you to categorize everything properly, and it's much easier if you're organized from the start. 3. Don't forget about estimated quarterly payments! Even though the LLC doesn't pay taxes directly, you and your partner will likely need to make estimated payments on your individual returns based on your K-1 income. 4. Consider setting up a separate business bank account if you haven't already. It makes tracking business expenses so much cleaner when tax time comes around. The March 15 deadline is firm, so start gathering your documents in January. If you think you might be cutting it close, file that extension (Form 7004) early - it's better to be safe than sorry with those penalties!