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FORM-1065

Partnership Tax Preparation (FORM-1065)

 

For businesses that operate as partnerships, for example, Limited Liability Partnership it’s the partners who are responsible for paying taxes on the business’ income, not the business. Partnerships, according to the IRS, do not pay taxes on their income. However, each partner is responsible for filing an individual tax return reporting their share of income, losses, deductions and credits that the business reported on the informational 1065 tax form.

At EJ Tax & Immigration Services, we can fill out your Form-1065 and your Schedule K-1, our professional make sure you received the maximum benefit allow by law and regulation. Also, we use Tax Planning and Implementation of Tax Strategies customized to your specific requirement.

Each partner is accountable for filing individual tax return to report their share of income, looses, deductions and credits. As a result, the partnership must prepare a Schedule K-1 to report each partner’s share of these tax items. K-1s are provided to the IRS with the partnership’s tax return and also to each partner so that they can add the information to their own tax returns. For example, if a business earns $400,000 of taxable income and has four equal partners, each partner should receive a K-1 with $100,000 of income on it.

Schedule K-1 The Schedule K-1 is slightly different depending on whether it comes from a Trust, Partnership or S Corporation. However, all K-1s provide detailed information about the type of income, deduction or loss so the recipient can accurately report the information on a tax return.

Our firm has knowledgeable and expert professional tax, with vast of experience in tax regulations and laws. In Fact, we have the responsibility to assist our clients to comply with Tax Rules and Regulations without putting our clients in danger of being audited. On the other hand, our professionals make sure clients receive the maximum credits that are allowable under the tax code and regulation. Lastly, at EJ Tax & Immigration Services, we constantly make sure you know what is being done on your return because the burden of proof and ultimate responsibility lies with you, the taxpayer.

According to the IRS Partners are not employees and should not be issued a Form W-2. The partnership must furnish copies of Schedule K-1 (Form 1065) to the partners by the date Form 1065 is required to be filed, including extensions.

If you are a partnership or a partner (individual) in a partnership, use the information in the charts below to help you determine some of the forms that you may be required to file.

Chart 1 (Partnership)

Chart 2-(Individual Partners in a Partnership)

Reminder: 2018 Partnership Tax Return is Due on

March 15th, 2019 

Completed     Missing Info
Completed     Missing Info
Completed     Missing Info
Completed     Missing Info

Basic Information

 

Identify business return type for filing as registered with the IRS (Form 1065, 1120, or 1120S). If not sure, contact the IRS Business help line at 1-800-829-4933.

 

Employer Identification Number (EIN) as registered with the IRS. If you don’t have an EIN, apply online at IRS.gov.

 

List of states and state ID numbers in which your business has nexus or a presence that requires reporting.

 

Copy of Partnership Agreement or bylaws including any Amendments.

 

Last year’s federal, state, and local tax returns.

 

All amounts and dates for federal, state, and local estimated tax payments made,

 

Partner-Information

 

Name, address, and SSN/EIN of each partner during the tax year.

 

List of each partner’s profit/loss/ownership percentage.

 

Reports all owner’s capital contributions, withdrawals, or loans.

 

Reports for all partner’s guaranteed payments, compensation and benefits including cost of medical and life insurance.

 

Reports detailing any change in ownership during the tax year.

Forms/Documents Received

 

All Forms 1099-B, 1099-DIV, 1099-INT, 1099-K, or 1099-MISC received (or other records for dividends, interest, or business income).

     

Schedule K-1 received from entities that your business owns (lower tier entities).

 

All granted credit certificates issued by federal or state taxing authorities.

 

Business and Financial Records

 

Trial balance report from company books.

         

Bank and credit card records to support interest and other day-to-day business expenses.

 

Copy or summary of all Form 1099 and W-2 issued.

                                   

Reports detailing all federal unemployment, Social Security, and Medicare tax paid (Forms 940 & 941).

                                               

Reports of state and local payroll tax paid

 

If business was conducted in multiple states, compile a report of sales, payroll, and property values for each state that you have nexus with.

                                   

Schedule of carryover losses, deductions, or credits from prior year tax returns.

 

Reports for inventory including cost of goods or materials purchased for resale or manufacture and the total value of goods or materials at the end of year.

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