Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 7, 2019 5:26:17 PM

I opened a general partnership in August 2018. We accounted for our sales, but did not file a 1065. Do I need to amend my return, or just submit the 1065 separately?

0 8 1060
1 Best answer
Level 15
Jun 7, 2019 5:26:23 PM

You must file the 1065 ASAP since it is now late and the penalties are piling up  AND then you all will get a K-1 to report on your personal returns so if you have already filed you will need to amend. 

Since this is your first year in a partnership and are not informed on your responsibilities  I HIGHLY recommend you seek local professional assistance since there will also be state implications to deal with ... once you get educated you could try filing the 1065 yourself in the future. 

8 Replies
Level 15
Jun 7, 2019 5:26:19 PM
Alumni
Jun 7, 2019 5:26:20 PM

How did you account for the sales if you didn't file the 1065?

New Member
Jun 7, 2019 5:26:22 PM

We are just a general partnership so my understanding was we each each account for our own sales and expenses on our personal small business taxes. I didn't know about the 1065 until we filed for an EIN this year and they told me we needed one. And how do we get a K-1 without creating it? we are a small crafting business. in 2018 we barely made $125 in sales. But this year we are doing really well, so I need to figure this out. Do we ammend our tax return? Or just submit the 1065 separately?

Level 15
Jun 7, 2019 5:26:23 PM

You must file the 1065 ASAP since it is now late and the penalties are piling up  AND then you all will get a K-1 to report on your personal returns so if you have already filed you will need to amend. 

Since this is your first year in a partnership and are not informed on your responsibilities  I HIGHLY recommend you seek local professional assistance since there will also be state implications to deal with ... once you get educated you could try filing the 1065 yourself in the future. 

New Member
Jun 7, 2019 5:26:25 PM

So, I file a 1065 on it's own, then they send us the K-1 and we ammend our personal returns? Do I just find a local CPA for help? I don't trust places like H&R block and don't know who to ask for help on this.. WE are a very small crafting business. Last year, we only sold $124 worth of items.

Level 9
Jun 7, 2019 5:26:25 PM

I agree, go to a tax professional.  I also agree that you should avoid the 'chain' stores.  Your best option is to ask friends and family that have a business and go to tax professional, and ask if they would recommend their tax professional (ask them WHY they would recommend that tax professional.  Personally, I would recommend an "Enrolled Agent".
<a rel="nofollow" target="_blank" href="https://irs.treasury.gov/rpo/rpo.jsf">https://irs.treasury.gov/rpo/rpo.jsf</a>

The K-1 is part of the Partnership return (1065), and the Partnership then issues you a copy of the K-1 (sort of like an employer issues employees a W-2).  But again, go to a tax professional to straighten things out, as you already have VERY large penalties accumulating.

New Member
Jun 7, 2019 5:26:26 PM

We did enter our sales and our expenses for the business on our personal taxes, so we paid our taxes. I am waiting to hear back from friends and family on who they trust locally to go to a real tax professional. This is all so frustrating.

Level 15
Jun 7, 2019 5:26:27 PM

So you filled out a schedule C on your personal return?  You will need to amend your return and delete schedule C and enter the K-1 you will get from the 1065 return.