What Form 1065-X (2025) Is For
IRS Form 1065-X (2025) allows partnerships and pass-through entities to correct errors or omissions on a previously filed Form 1065, U.S. Return of Partnership Income. It also serves as an Administrative Adjustment Request (AAR) for partnerships subject to the Bipartisan Budget Act (BBA) centralized audit regime.
For tax year 2025, partnerships use this form to report accurate information about partnership income, deductions, and credits. Filing an amended return ensures compliance with IRS rules, helps avoid penalties and interest, and maintains the accuracy of partners’ income and tax records.
For a detailed breakdown of filing requirements, eligibility rules, and step-by-step instructions, see Form 1065-X: Amended Return or Administrative Adjustment Request (AAR) – A Complete Guide for 2025.
When You’d Use Form 1065-X
Partnerships file Form 1065-X when errors are discovered on a previously filed information return. This includes cases where partnership income, deductions, or partner allocations were misreported.
Common Reasons to File
- The partnership reported incorrect income, deductions, or expenses and needs to correct them.
- Partners received corrected Schedule K-1 forms that reflect changes to their share of partnership income or credits.
- The partnership identified errors in capital account reporting or allocation of profits and losses.
- The business must reconcile any missing or misclassified transactions that affect tax liability.
Filing Timeline
A partnership generally has three years from the later of the return’s due date or filing date to submit corrections. However, BBA partnerships cannot file an AAR after receiving a Notice of Administrative Proceeding. At that stage, all issues must be resolved through the audit process.
Key Rules or Details for 2025
For tax years beginning on or after January 1, 2023, partnerships must use the August 2023 revision of Form 1065-X. Partnerships that were required to e-file their original return must also e-file their amended filing unless exempt.
Main Filing Requirements
- BBA partnerships must use Form 1065-X as an AAR. They must calculate any imputed underpayment (IU) and may pay it at the partnership level or elect to push out adjustments to reviewed-year partners.
- Non-BBA partnerships may file traditional amended returns electronically or on paper to correct prior-year data.
- Authorized signatures are required from the partnership representative or designated individual (for BBA partnerships).
- The mailing address should match the original IRS service center where the return was filed.
- Supporting forms may include amended Schedules K-1, Forms 8985, 8986, or 8980, depending on the type of filing.
These details help ensure proper compliance and accurate reflection of partnership income and deductions.
For complete details on wage reporting, withholdings, and unemployment tax filings, see our guide for Business Income Tax Forms.
Step-by-Step (High Level)
Step 1: Determine the Partnership Category
Identify whether the partnership is subject to BBA rules. This determines whether the submission is an amended return or an AAR.
Step 2: Collect Supporting Documentation
Gather the original return, corrections, and written explanations. Each change must list the original amount, the adjustment, and the corrected figure.
Step 3: Complete the Form
- Indicate whether the filing is an amended return or an AAR.
- Enter all figures in Parts I–III.
- Provide clear explanations for each change in Part V.
Step 4: Calculate Imputed Underpayment (BBA Only)
Compute the IU amount and determine whether to pay at the partnership level or make adjustments. If pushing out, prepare Forms 8985 and 8986 for all reviewed-year partners.
Step 5: Attach Required Forms and Statements
Include all necessary schedules and statements that explain the reason and computation for each adjustment.
Step 6: Sign and Submit
Have the authorized person sign the form. File electronically if required or mail it to the appropriate IRS service center.
Step 7: Distribute Corrected Partner Information
Provide each partner with amended Schedules K-1 or Form 8986, allowing them to update their own filings accordingly.
Common Mistakes and How to Avoid Them
Filing Form 1065-X requires accuracy and attention to detail. Minor errors can delay processing, trigger penalties, or lead to IRS inquiries. Partnerships can avoid these issues by carefully reviewing requirements and verifying all information before submission.
- Using the wrong revision: Always ensure the version matches the correct tax year.
- Submitting the wrong filing type: BBA partnerships must use AARs instead of traditional amended returns.
- Failing to calculate imputed underpayment: Every BBA filing requires a computation, even if the result is zero.
- Missing deadlines: File within the three-year window to avoid penalties and additional tax or interest.
- Insufficient explanations: Each correction must include the reason, data, and supporting documents.
- Incorrect signature authority: Only the partnership representative or designated individual may sign for BBA filings.
Following these practices helps partnerships maintain compliance, reduce audit risks, and ensure timely acceptance of their amended returns.
What Happens After You File
The IRS reviews Form 1065-X for completeness, accuracy, and correct documentation. Processing times vary depending on whether the return was e-filed or mailed. Partnerships should keep proof of filing, payment confirmations, and supporting documentation to ensure accountability. If the IRS identifies issues or needs clarification, it may request additional information or open an examination to verify the amended data.
Once the IRS accepts the submission, it processes any imputed underpayment or confirms that adjustments were applied correctly to partners. Non-BBA partners must file amended returns reflecting their updated income or deductions, while BBA partners use Form 8978 to report adjustments from Form 8986. Interest and penalties may accrue on underpayments until payment is made, making timely and accurate filing essential to protect compliance and minimize additional costs.
FAQs
Can a partnership file IRS Form 1065-X for an amended return?
A partnership can file IRS Form 1065-X to correct information on a previously filed return. This form helps ensure accurate partnership income, deductions, and tax credits under current tax year rules.
What types of errors require a partnership to file Form 1065-X?
Partnerships generally need to file when they discover incorrect income, deductions, or items related to the partnership. Filing an amended return ensures compliance with IRS law and prevents penalties or interest on underreported income.
What is the due date for filing an amended partnership information return?
The due date is typically three years from the original filing date or due date, whichever is later. Filing within this period allows the partnership to report correct information and avoid additional payments or penalties.
Can a pass-through entity claim additional tax credits on Form 1065-X?
Yes, a pass-through entity may claim tax credits or deductions it previously missed. This helps ensure partners receive accurate profits, income, and credit allocations while maintaining proper compliance with IRS reporting rules.
What happens if the partnership fails to file Form 1065-X on time?
Failing to file can lead to penalties, interest, and delayed processing. Partnerships must act promptly once errors are identified to correct the information return and ensure compliance with IRS tax requirements for accuracy and accountability.
Where should partnerships mail Form 1065-X?
Partnerships should mail the completed form to the IRS service center that processed the original return. The address depends on the location and filing type. Electronic filing options help save time and ensure faster acceptance.
For more resources on filing or understanding prior-year IRS forms, visit our Form Summaries and Guides Library.
