If no income and no expenses (treated as deductions or credits), then there is no requirement to file a federal return.
From Instructions for Form 1065 (2020) : 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.
Until you officially dissolve the partnership, however, CA expects you to file Form 565.
A partnership (including REMICs classified as partnerships) that engages in a trade or business in California or has income from a California source must file Form 565.
Doing Business - A taxpayer is doing business if it actively engages in any transaction for the purpose of financial or pecuniary gain or profit in California or if any of the following conditions are satisfied:
- The taxpayer is organized or commercially domiciled in California.
- The sales, as defined in R&TC Section 25120(e) or (f), of the taxpayer in California, including sales by the taxpayer’s agents and independent contractors, exceed the lesser of $601,967 or 25% of the taxpayer’s total sales.
- The real property and tangible personal property of the taxpayer in California exceed the lesser of $60,197 or 25% of the taxpayer’s total real property and tangible personal property.
- The amount paid in California by the taxpayer for compensation, as defined in R&TC Section 25120(c), exceeds the lesser of $60,197 or 25% of the total compensation paid by the taxpayer.
