What IRS Form 1065 (2015) Is For

Form 1065 is the U.S. Return of Partnership Income that partnerships must file to report their annual income, deductions, gains, losses, and other financial information to the IRS (IRS Instructions for Form 1065, 2015). Every domestic partnership—including LLCs classified as partnerships—must file Form 1065 unless it neither receives income nor incurs any expenditures treated as deductions or credits for federal tax purposes.

When You'd Use Form 1065 for 2015 (Late or Amended Filing)

You would file a late or amended Form 1065 for 2015 if you missed the original April 15, 2016 deadline, received IRS notices about unfiled returns, or discovered errors on a previously filed return.

Common scenarios include:

• Notices demanding the return
  
  
• Balance due amounts triggering IRS collection activity
  
  
• Correcting partner information or income allocations
  
  

Since the three-year statute of limitations for refunds has expired for 2015 returns, late filing is primarily about compliance and stopping penalty accrual rather than claiming refunds.

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Key Rules Specific to 2015

• Final April 15 deadline: 2015 was the last year partnership returns were due April 15. Starting with 2016 returns, the deadline moved to March 15.
  
  
• K-1 penalties: Penalties for failing to furnish Schedule K-1s were $260 per K-1 (IRS Instructions for Form 1065, 2015).
  
  
• ACA reporting requirements: 2015 introduced Affordable Care Act information reporting obligations for certain employers.
  
  
• Audit rule changes: The Bipartisan Budget Act of 2015 laid groundwork for the new partnership audit rules that began applying in 2018.
  
  

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Step-by-Step (High Level)

• Gather transcripts: Request account transcripts from the IRS to verify filings and penalties.
  
  
• Complete Form 1065 (2015): Use the correct 2015 version and prepare Schedule K-1s for each partner.
  
  
• Attach schedules: Include Schedule M-1 (book-tax reconciliation), Schedule L (balance sheet), and other required attachments.
  
  
• File and distribute: Mail the return or file electronically if eligible, and distribute K-1s to partners.
  
  
• Keep records: Retain copies of the filed return, schedules, and all supporting documentation.
  
  

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Common Mistakes and How to Avoid Them

• Incorrect partner info: Double-check names, addresses, and TINs on all K-1s.
  
  
• Book-tax reconciliation errors: Ensure Schedule M-1 reconciles financial statement income with taxable income.
  
  
• Late or missing K-1s: Provide partners with timely Schedule K-1s to avoid penalties.
  
  
• Unsigned returns: Make sure a general partner or LLC manager signs the return.
  
  
• Wrong due date assumption: Remember 2015 returns were due April 15, 2016, not March 15 like later years.
  
  
• Large partnership errors: Partnerships with 100+ partners had to e-file; paper filing triggered penalties.
  
  

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What Happens After You File

The IRS processes partnership returns within several weeks, but late returns often take longer. You may receive notices requesting clarification or proposing adjustments.

If penalties are assessed, you can:

• Request a payment plan using Form 9465
  
  
• Seek penalty abatement for reasonable cause
  
  

Partnerships themselves generally don’t pay tax; partners report income through K-1s. If you disagree with IRS adjustments, you may appeal through the Office of Appeals.

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FAQs

How much are the late filing penalties for 2015?

The penalty is $195 per month, per partner, for up to 12 months. For example, a 3-partner entity filing 6 months late owes $3,510 ($195 × 3 × 6).

Can I still get refunds for the 2015 tax year?

No. Refund claims expired April 15, 2019. Filing now is about compliance, not refunds.

Do I need transcripts before filing a late return?

Yes. Transcripts show what the IRS has on file, including penalties or substitute returns they may have created.

What if my partnership had no income in 2015?

You may still need to file if deductible expenses or other reportable transactions occurred (IRS Instructions for Form 1065, 2015).

Should I amend my state return too?

Yes, in most cases. States often require amended returns when federal filings are amended.

Can penalties be waived?

Yes. The IRS may waive penalties for reasonable cause, such as disaster, casualty, illness, or reliance on professional advice.

How do I distribute corrected K-1s?

Mark them “AMENDED” and send to all affected partners so they can correct their own returns.

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