Partnership Income Taxes
Federal and State Filing
A partnership is the relationship between two or more people to do trade or business. Each person contributes money, property, labor or skill, and shares in the profits and losses of the business.
The United States IRS requires all companies to file their business tax returns regardless of whether the company profited the previous year or not. BoswickTax is among the reliable tax return companies that offer their partnership tax preparation and return filing services quickly and easily.
Income tax preparation can sometimes become a hurdle in daily activates of a business, and to take that burden off your shoulder, we extend our helping hand to make your life easy.
Who Should File
A partnership must file an annual information return to report the income, deductions, gains, and losses from its operations. However, a partnership doesn’t pay income taxes. Instead, it “passes” profits or losses to its partners. Each partner reports their share of the partnership’s income or loss on their personal income tax return.
Partners are issued Schedule K-1 (Form 1065) rather than a W2. This is because a partner is not an employee. The partnership should furnish the schedule K-1 to each partner.
When to File
Federal and state income tax returns are generally due April 15th following the calendar year-end. Returns can be filed as soon as January 1st, but the IRS doesn’t start processing returns until around mid-February.
The partnership, as an entity, may need to file a Form 1065 as well. This form reports the income of a partnership as an entity.
To get started, send us a message and request an online portal. We’ll setup an account for you and then your tax preparer will walk you through the next steps.