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.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/partnerships">https://www.irs.gov/businesses/small-businesses-self-employed/partnerships</a>
How did you account for the sales if you didn't file the 1065?
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?
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.
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.
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.
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.