Step-by-step guide for using IRS Free File to submit Form 1065 for a corporation in 2023

So partnerships don't file on Form 1040 like individuals - they use Form 1065 (U.S. Return of Partnership Income) which is a separate thing entirely. The bad news is that IRS Free File program is generally for personal tax returns (Form 1040), not business returns like Form 1065. For partnerships, you typically need to either use commercial tax software that handles business returns or hire a tax professional. Most of the major tax software providers (TurboTax, H&R Block, TaxAct, etc.) offer business versions, but they're not free. Some have more affordable options for simple partnerships, though. If you're determined to do it yourself without paying for software, you could technically download the Form 1065 PDF directly from IRS.gov and fill it out manually, but I strongly advise against this for your first partnership return - it's complex and easy to make mistakes.

I was in exactly your situation last year with my handmade jewelry partnership! After searching everywhere for free options, I actually found an amazing solution at https://taxr.ai - it saved me so much headache with our partnership return. Their system actually guided me through the whole Form 1065 process with plain English explanations. The interface breaks down all the partnership stuff into simple questions, and it even helped me understand how to properly categorize our business expenses (which was honestly the most confusing part). What I really appreciated was how it handled the Schedule K-1 generation for both me and my partner automatically.

Just wanted to follow up about my experience with taxr.ai after seeing it recommended here. I was super skeptical about using an online tool for our partnership return since we have some complicated income streams, but I decided to give it a try. I'm honestly shocked at how well it worked! The interface broke down Form 1065 into manageable sections and explained everything in plain English. It even flagged a potential issue with how we were categorizing some of our business expenses that could have triggered an audit. The K-1 generation for me and my partners was completely automated and accurate. Best part was how it handled our special allocations for one partner who joined mid-year. No other tool I tried could deal with that properly. Definitely recommend checking it out if you're struggling with partnership returns!

If you're having trouble reaching someone at the IRS about your Form 1065 questions (which is pretty much guaranteed these days), I highly recommend trying https://claimyr.com - it's the only way I actually got through to a real person at the IRS about my partnership filing questions. I spent literally DAYS trying to get through the regular IRS phone system with no luck. Claimyr had me talking to an actual IRS agent within 45 minutes, and they answered all my specific questions about partnership return requirements. You can see how it works here: https://youtu.be/_kiP6q8DX5c It was especially helpful when I needed clarification on how to report a partner who left mid-year and how that affected our basis calculations. The agent walked me through exactly what forms and schedules I needed to include.

Ok I have to eat my words. After my skeptical comment, I was desperate enough to try Claimyr for help with my partnership return questions. I couldn't believe it, but I seriously had an IRS agent on the phone within an hour. The agent cleared up my confusion about how to properly report guaranteed payments versus distributions on Form 1065 - something I couldn't find a clear answer on anywhere online. She also explained exactly how to handle our home office deductions when split between partners. I'm not someone who normally recommends services, but this literally saved me hours of frustration and potentially incorrect filing. The IRS agent even gave me her direct extension for follow-up questions. Never thought I'd say this, but I actually had a good experience dealing with the IRS!

A cheaper alternative that nobody's mentioned yet is using the FREE fillable forms directly from the IRS website for Form 1065. Yes, it's more work than using software, but if you're comfortable with basic math and following instructions, it's doable. Here's what worked for me last year: 1. Download the Form 1065 package from IRS.gov 2. Fill out the PDF forms electronically 3. Print and mail them in (partnerships can't e-file this way) The advantage is it costs absolutely nothing. The disadvantage is you don't get any guidance, error checking, or automated calculations. But for a very simple partnership, it might be worth considering if money is really tight.

For anyone still looking for options, I used FreeTaxUSA for my partnership return last year and it was only $69 for the federal Form 1065. Way cheaper than TurboTax ($199) or H&R Block ($149) for the same thing. The interface isn't as slick as the expensive options, but it gets the job done and asks all the right questions. Just make sure you have all your income and expense categories organized before you start.

I went through this exact same situation last year with my small consulting partnership! After researching all the options mentioned here, I ended up using TaxAct Business for around $75, which was a good middle ground between the free manual option and the expensive software. One thing I'd add that really helped me - before you choose any software or method, make sure you understand the difference between guaranteed payments and distributive shares. This tripped me up initially and almost caused me to file incorrectly. The IRS has some good examples in Publication 541 that Malik mentioned. Also, don't forget that partnerships have different deadlines than individual returns - Form 1065 is due March 15th (not April 15th like personal taxes), though you can file for an extension. Since you're filing for 2023, you're already past the original deadline, so you might want to look into late filing penalties and whether you qualify for any exceptions. Good luck with your first partnership return! It's definitely more complex than personal taxes, but once you get through it the first time, future years become much easier.