What IRS Form 1065-B (2017) Is For

IRS Form 1065-B (2017) was used exclusively by electing large partnerships (ELPs)—special types of partnerships that had 100 or more partners and elected ELP status. Instead of filing the standard Form 1065, these entities filed Form 1065-B to report income, deductions, gains, losses, and credits. Unlike regular partnerships that reported many items separately, ELPs combined most items at the partnership level and passed through net results to partners (IRS Instructions for Form 1065-B (2017)).

When You'd Use Form 1065-B for 2017 (Late or Amended Filing)

You’d need to file a 2017 Form 1065-B late if your ELP never filed the original return (due March 15, 2018) or if you must correct errors on a previously filed return. Late filings often arise after IRS notices, unresolved balance due issues, or discovering allocation errors that affect partner K-1s. Since 2017 was the last year Form 1065-B was used, any subsequent years must be filed on the standard Form 1065.

Key Rules Specific to 2017

• Final year of ELP rules: Public Law 114-74 repealed the electing large partnership provisions for tax years beginning after 2017.
  
  
• Combined reporting: ELPs reported net income and deductions at the partnership level rather than separately stating items.
  
  
• Due dates: Form 1065-B and all Schedules K-1 were due March 15, 2018.
  
  
• Penalties: The late filing penalty was $195 per partner per month (maximum 12 months).
  
  
• Different rules than today: Do not apply current partnership tax rules to 2017 ELP filings—the audit and reporting systems were distinct.
  
  

Step-by-Step (High Level)

1. Gather records: Collect 2017 books, prior filings, IRS notices, and financial statements.
   
   
2. Get transcripts: Request IRS account transcripts to verify what’s on file and whether penalties have been assessed.
   
   
3. Prepare the 2017 Form 1065-B: Download the correct 2017 version from IRS.gov—current forms cannot be used.
   
   
4. Complete Schedules K-1: Issue a K-1 for every partner; totals must reconcile with the main return.
   
   
5. File properly: Mail paper returns to the IRS Ogden, UT processing center. E-filing may not be available for returns this old.
   
   
6. Maintain documentation: Keep complete copies, partner K-1s, and mailing proof for compliance purposes.
   
   

Common Mistakes and How to Avoid Them

• Using wrong forms: Only the 2017 Form 1065-B applies—do not substitute current partnership forms.
  
  
• Unsigned returns: A general partner or LLC member manager must sign. Unsigned returns are invalid and trigger penalties.
  
  
• K-1 errors: Totals on all partner K-1s must tie back to the main return. Missing K-1s lead to separate penalties.
  
  
• Mailing errors: Returns must be sent to the Ogden, UT IRS processing center, not to local offices.
  
  
• Mixing rules: Avoid applying post-2017 audit rules or reporting requirements to a 2017 return.
  
  
• State filings: Many states require corresponding amended or late filings when federal returns are corrected.
  
  

What Happens After You File

• Processing time: 12–16 weeks for late returns, longer if manual review is needed.
  
  
• Penalty assessments: Expect notices for late filing penalties—$195 per partner per month (up to 12 months).
  
  
• Payment options: Use Form 9465 (Installment Agreement Request) or IRS.gov to arrange payments if you cannot pay in full.
  
  
• IRS follow-up: You may receive requests for clarification on certain items or adjustments.
  
  
• Appeal rights: If you disagree with penalties or adjustments, you can request abatement or pursue IRS Appeals review.
  
  

FAQs

Can I still file Form 1065-B for 2017 even though it's years late?

Yes. You may file late at any time, but penalties accumulate until you file. While there’s no statute of limitations for late filings, the IRS enforces penalties strictly, and failure to file leaves the statute of limitations open indefinitely. Filing promptly stops further penalties and prevents future compliance complications.

How are late filing penalties calculated for Form 1065-B?

Penalties are $195 per partner per month (or part of a month) for up to 12 months. For example, a 10-partner partnership filing six months late would owe $11,700 ($195 × 10 × 6). This penalty is assessed at the entity level and does not depend on whether the partnership had taxable income.

Do I need to get tax transcripts before filing a late 2017 return?

While optional, transcripts help you confirm whether the IRS already has a return on file, whether substitute filings exist, and what penalties are assessed. Having this information prevents duplicate submissions and ensures your filing aligns with IRS records. You can request transcripts through Form 4506-T or by calling the IRS business line.

Is there still time to claim refunds from the 2017 tax year?

No. The refund statute of limitations expired on March 15, 2021 (three years after the original due date). While partners may amend their own 2017 returns if still within their statute of limitations, the partnership itself cannot claim refunds. Filing now only resolves compliance and penalty exposure.

Should I also amend state partnership returns?

Yes, in most cases. Many states require amended or late state filings when the federal partnership return changes. Failing to file corresponding state returns can create additional penalties and compliance issues. Contact your state tax department for specific rules and deadlines applicable to 2017 returns.

What if I can't find the 2017 Form 1065-B?

You can download prior-year forms and instructions from the IRS’s Prior Year Forms and Instructions archive (IRS.gov). Using the correct form is essential, since line items, schedules, and rules differ significantly from current versions. Substituting current forms could lead to incorrect reporting and rejected filings.

Can I electronically file a late 2017 Form 1065-B?

E-filing for very late returns may not be available. Contact the IRS e-help desk at 1-866-255-0654 to confirm current options. In most cases, paper filing is the only method accepted for late 2017 ELP returns. Always use certified mail or another traceable delivery service to prove timely submission.

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