What IRS Form 1065-B (2015) Is For
IRS Form 1065-B (2015) was a specialized tax form used by electing large partnerships (ELPs) to report income, deductions, capital gains, and other items for a specific tax year. These partnerships included 100 or more partners that chose special treatment under federal tax law. Instead of reporting every detail on each partner’s tax return, ELPs calculated and reported most figures—such as income and deductions—at the partnership level. The IRS then required these businesses to issue summaries showing each partner’s share of taxable income, credits, and capital gains.
The form provided a way for certain entities to simplify their tax payment and profit reporting, while ensuring partners received accurate information for their personal filings. For the 2015 tax year, the IRS provided specific instructions and mailing addresses for businesses to file this form and make any related payments.
When You’d Use Form 1065-B for 2015 (Late or Amended Filing)
You would file a late or amended 2015 Form 1065-B if your partnership failed to file the original return or received an IRS notice requesting compliance. Filing might also be required to correct an error or update a partner’s share of income or deductions. Although taxpayers can no longer claim refunds for 2015, filing ensures accurate records and prevents further penalties or interest.
Common reasons for late filing include:
- Unfiled Returns: A partnership discovers an unfiled tax return during a compliance review and must file promptly to avoid further charges.
- Incorrect Information: A partnership needs to correct previously reported income, deductions, or credits on the return.
- IRS Notices: The IRS sends a notice requesting missing documents, information, or payment details.
- Amended Records: Partners require corrected Schedules K-1 for their own tax forms and filings.
Even if the taxable year has long passed, large partnerships must still file to remain compliant with the IRS and avoid maximum penalty assessments.
Key Rules Specific to 2015
- End of ELP Rules: The 2015 tax year was the next-to-last year before the repeal of the ELP system, as outlined in Public Law 114-74.
- K-1 Deadlines: Partnerships had to provide each partner’s Schedule K-1 by March 15 of the year following the end of the tax year to ensure timely reporting of income and other items.
- Penalty Amounts: The penalty for late filing was $195 per partner per month, up to a maximum of 12 months, depending on when the form was filed.
- Ownership Limits: ELPs could not terminate under the 50% ownership change rule typically applied to smaller partnerships or S corporations.
These rules required partnerships to review their operations carefully and determine how to accurately calculate and report income to the IRS.
Step-by-Step (High Level)
- Gather Transcripts: Use Form 4506-T to request account or return transcripts that show income, deductions, and payments for the 2015 taxable year.
- Prepare Return: Complete the 2015 IRS Form 1065-B and attach all schedules for each partner’s share of income, capital, and other items reported to the IRS.
- Attach Explanations: Include written statements if filing late, explaining reasonable cause for delay, or requesting penalty abatement when applicable.
- File Appropriately: Mail the signed form and any payment due to the IRS Ogden, UT service center. Electronic filing may no longer be available for this tax year.
- Maintain Records: Keep copies of all documents, including proof of mailing and delivery, for your account records and future review.
These steps help partnerships, estates, and trusts ensure that their filings are correct and complete on behalf of all members and shareholders.
For complete details on wage reporting, withholdings, and unemployment tax filings, see our guide to Business Income Tax Forms.
Common Mistakes and How to Avoid Them
- Wrong Form Year: Always use the 2015 tax form and not the current version of Form 1065 to avoid incorrect reporting.
- Late K-1s: Failing to mail Schedule K-1s to partners by the deadline can trigger penalties, so always track due dates and send them early to avoid delays.
- Incorrect Partner Counts: Confirm how many partners or members you have to ensure ELP eligibility and proper penalty calculation.
- Mixing Rules: Do not apply S corporation or standard partnership tax rules to ELP filings, as the structures differ under the law.
- Unsigned Forms: Ensure the tax return is signed and dated by an authorized partner before mailing to prevent invalid filing.
- Penalty Miscalculations: Review the penalty formula carefully, which is $195 per partner per month up to a maximum of 12 months.
Always review your return online or through a tax professional before filing. Correcting errors early helps reduce interest, avoid notices, and maintain good standing with the IRS.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
The IRS processes late or amended partnership returns manually, which means it may take several weeks for you to receive an acknowledgment or balance notice. If penalties are assessed, you may request payment assistance through Form 9465 to set up an installment agreement.
Partners may need to file amended individual tax returns (Form 1040X) to reflect changes in their share of income, deductions, or credits. If an amended partnership return changes capital gains or other items, the IRS may send further notices requesting clarification. Always sign and mail responses promptly to prevent delays or additional charges.
Businesses that owe funds must remit payment to the appropriate IRS address listed in the instructions. Keeping your account current helps prevent interest charges and protects against future enforcement actions.
FAQs
Can I still file IRS Form 1065-B 2015 as my tax return?
Yes, you can file the IRS Form 1065-B 2015 as a late or amended partnership tax return if it was never submitted. While you cannot claim refunds, filing satisfies compliance requirements and avoids further penalties or interest on any unpaid tax balance.
What penalties apply when filing this tax form late?
If your tax form is filed after the deadline, penalties of $195 per partner per month will apply for up to 12 months. The IRS may reduce the amount if you qualify for reasonable cause abatement. Review all documents carefully before mailing to ensure accuracy and prevent further interest.
Do capital gains need to be reported for 2015 partnerships?
Yes, capital gains, interest, and other income items must be reported on Form 1065-B for the 2015 taxable year. The partnership calculates each partner’s share of profits, losses, and deductions, ensuring that all taxable income and related credits are distributed fairly and accurately.
Should tax professionals or S corporation members use Form 1065-B?
No, Form 1065-B applies only to electing large partnerships, not S corporations. Tax professionals assisting clients should confirm entity type before filing. S corporation shareholders must instead file Form 1120-S to report income, deductions, and capital distributions to the IRS.
How do I report my partner's share and other items correctly?
Each partner’s share of income, deductions, and other items must appear on Schedule K-1 attached to Form 1065-B. This ensures every partner or member receives accurate details for their personal filings. Always review totals and sign before submission to prevent errors and notices.
