Dissolving a partnership

[tmarz]

We're dissolving a partnership early in 2023.  I'm being told, on the 2022 filing, to check the final return box on form 1065.  Is this correct?

[Anonymous_ · Accepted solution]

You will almost certainly be filing the final return for the partnership in the 2023 tax year.

See https://www.irs.gov/instructions/i1065#en_US_2022_publink11392vd0e555

Except as provided below, every domestic partnership must file Form 1065, unless it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.

[BrittanyS]

Unfortunately, you will want to file a final return in the year the partnership was dissolved.  You would file a return as usual if the partnership was not dissolved in 2022.  As tagteam stated, you will be filing the final return for the partnership in the tax year 2023. 

For more information, see the link below:

Closing a partnership