A partnership is a tax entity separate from its partners. Like a person, it must file a tax information form annually (not technically a return since it is to provide information only) . Unlike a C corporation, it does not itself pay taxes. Form 1065 is an information return used to report the income, gains, losses, deductions, credits, etc., from the operation of a partnership. A partnership does not pay tax on its income but “passes through” any profits or losses to its partners. Partners must include partnership items on their individual tax returns.
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