What IRS Form 1065 (2022) Is For

Form 1065 is an information return that partnerships use to report their income, gains, losses, deductions, and credits to the IRS (IRS Instructions for Form 1065 (2022)). Partnerships generally don’t pay taxes directly—instead, they “pass through” profits and losses to individual partners, who report their share on their personal tax returns.

The partnership must also prepare Schedule K-1 forms for each partner, showing their individual share of partnership items.

When You'd Use Form 1065 for 2022 (Late or Amended Filing)

You’ll typically file a late 2022 Form 1065 if you:

• Missed the original March 15, 2023 deadline (or September 15, 2023 with extension)
  
  
• Received IRS notices about unfiled returns or balance due amounts
  
  
• Need to correct errors on a previously filed return
  
  

Late filing situations often arise when:

• Partnerships fail to maintain proper books and records
  
  
• Electronic filing requirements (for partnerships with 100+ partners) weren’t met
  
  
• Errors were discovered that require correction
  
  

While partnerships cannot claim refunds, filing is required to avoid mounting penalties and to provide partners with accurate K-1s.

Key Rules Specific to 2022

• 100% meals deduction: Certain business meals paid between 2021–2022 were fully deductible.
  
  
• Gross receipts reporting: Partnerships with gross receipts over $5 million had new reporting obligations to partners.
  
  
• Centralized audit regime: BBA rules remained in effect; most partnerships are subject to entity-level audits unless they elected out.
  
  
• COVID credits: 2022 was the final year for some COVID-related payroll credits, which had to be reported as income.
  
  

Step-by-Step (High Level)

• Gather transcripts and records: Request account transcripts at IRS.gov and collect all 2022 partnership books, bank statements, and financial records.
  
  
• Complete the correct-year form: Use the 2022 Form 1065 and schedules, ensuring book-to-tax reconciliation on Schedule M-1.
  
  
• Prepare partner documents: Complete and distribute Schedule K-1s to all partners.
  
  
• Attach required schedules: Include Schedule B, Schedule L, and any additional required forms.
  
  
• File properly: Mail to the correct IRS service center or e-file if eligible (mandatory if 100+ partners).
  
  
• Maintain records: Keep copies of the return, all schedules, and supporting documentation for at least three years.
  
  

Common Mistakes and How to Avoid Them

• Penalty miscalculations: Late filing penalty is $220 per partner, per month (max 12 months).
  
  
• Missing K-1s: Every partner must receive a K-1—even if their share is zero.
  
  
• Book-tax reconciliation errors: Errors on Schedule M-1 (e.g., guaranteed payments, depreciation, tax-exempt income) often trigger notices.
  
  
• Failure to e-file: Large partnerships (100+ partners) must e-file to avoid penalties.
  
  
• Incomplete balance sheets: Inaccuracies on Schedule L frequently raise IRS inquiries.
  
  
• Foreign reporting omissions: Partnerships with foreign transactions must file K-2/K-3, and possibly Form 8865.
  
  

What Happens After You File

• Processing time: Several weeks for electronic filings; longer for paper or error-prone filings.
  
  
• IRS notices: Sent if issues arise (math errors, missing items, or penalties).
  
  
• Penalty relief: You may qualify for First Time Abate or reasonable cause relief.
  
  
• Payment options: Penalties can be paid through IRS.gov/payments or by setting up an installment agreement using Form 9465.
  
  
• Appeal rights: Disputes may be resolved through the centralized partnership audit regime.
  
  

FAQs

How much is the late filing penalty for 2022?

$220 per partner per month (max 12 months). Example: a 5-partner partnership that’s 3 months late owes $3,300 ($220 × 5 × 3).

Can I get transcripts for years I never filed?

Yes, request “Record of Account” transcripts at IRS.gov or by calling 1-800-908-9946. These show IRS filings and substitute returns, if prepared.

Is there a deadline for claiming refunds on partnership returns?

Partnerships don’t receive refunds, but partners may amend their own returns within 3 years of the due date using corrected K-1 information.

Should I amend my state partnership return too?

Most states require amended returns when the federal return is amended. Check your state tax agency’s requirements.

What if I discover errors after filing my late return?

File Form 1065-X or submit an Administrative Adjustment Request (AAR) depending on the error type. Corrections are generally allowed within 3 years.

Can partnerships make installment agreements for penalties?

Yes, use Form 9465 or apply online through IRS.gov/paymentplan to arrange penalty and interest payments.

What books and records do I need for 2022?

Maintain ledgers, bank statements, invoices, receipts, depreciation schedules, and partnership agreements. Records must be available for up to 6 years if income was substantially understated.

‍