What IRS Form 1065-B (2015) Is For

Form 1065-B was used by electing large partnerships (ELPs) to report income, deductions, gains, and losses at the partnership level. ELPs were partnerships with 100 or more partners that elected special tax treatment. Instead of passing through all separately stated items, most amounts were aggregated and passed through as net amounts to partners (IRS Instructions for Form 1065-B (2015)).

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 ELP failed to file the original return, received IRS notices, or needs to correct previously reported information. Typical late scenarios include unfiled returns discovered during compliance checks or balance due notices. Refund claims are unavailable since the three-year statute for 2015 expired in 2019.

Key Rules Specific to 2015

• Near end of ELP system: 2015 was the second-to-last year ELP rules applied. The regime was repealed after 2017 (Public Law 114-74).
  
  
• Unique K-1 deadlines: ELPs had to furnish Schedule K-1s to partners by March 15 following year-end.
  
  
• Penalty structure: Late filing penalties were $195 per partner per month, up to 12 months.
  
  
• Other distinctions: ELPs couldn’t terminate under the 50% ownership change rule applicable to regular partnerships.
  
  

Step-by-Step (High Level)

• Gather transcripts: Request account or return transcripts using Form 4506-T.
  
  
• Prepare return: Complete the 2015 Form 1065-B with required Schedules K-1 for each partner.
  
  
• Attach explanations: Include statements explaining late filing and any reasonable cause for penalty abatement.
  
  
• File appropriately: Mail to the IRS Ogden, UT processing center; electronic filing may not be available this late.
  
  
• Maintain records: Keep copies of the filed return, all schedules, and proof of delivery for compliance.
  
  

Common Mistakes and How to Avoid Them

• Wrong form year: Always use the 2015 Form 1065-B, not the standard 1065.
  
  
• Late or missing K-1s: ELPs had a March 15 deadline for partner K-1s; missing this triggers separate penalties.
  
  
• Incorrect partner counts: Count all direct partners, excluding service partners, to confirm ELP eligibility.
  
  
• Mixing ELP and standard rules: Don’t apply standard partnership rules where ELP-specific provisions apply.
  
  
• Unsigned returns: Missing signatures invalidate the filing and allow penalties to accrue.
  
  
• Penalty miscalculations: Remember penalties are $195 × number of partners × number of months late (up to 12).
  
  

What Happens After You File

The IRS processes late or amended Form 1065-B filings manually, often taking several weeks or more. Notices confirm receipt or outline assessed penalties. If penalties are due, you may use Form 9465 for installment agreements. Partners may need to amend individual returns using Form 1040X if corrected K-1s are issued. You can dispute IRS adjustments through appeals if necessary.

FAQs

Can I still elect ELP status for years after 2015?

No. The electing large partnership rules were repealed for tax years beginning after 2017, with 2017 being the final year available. From 2018 onward, all partnerships, regardless of size, file under the standard Form 1065 regime. ELP elections can no longer be made, and any existing elections are considered terminated by law.

What penalties apply for filing my 2015 Form 1065-B late?

The penalty was $195 per partner per month, capped at 12 months. Additional penalties applied if Schedule K-1s weren’t provided to partners on time. For example, a 120-partner ELP filing six months late could face penalties exceeding $140,000, highlighting the importance of timely filing and requesting abatement if reasonable cause exists.

Can I get transcripts for my 2015 partnership return?

Yes. You can use Form 4506-T to request transcripts, though very old returns may take longer to process. The IRS may only provide account transcripts, which show filing history, penalty assessments, and balance due amounts. Return transcripts with line-item detail may no longer be available for partnership returns that old.

Is there any refund available for overpaid 2015 taxes?

No. Refund claims are subject to a strict three-year statute of limitations, which expired in 2019 for 2015 returns. Even if the partnership overpaid penalties or amounts through misapplied credits, refunds are barred. Filing now only addresses compliance issues and prevents additional penalties, but it won’t produce refunds.

Do I need to file amended state returns too?

Yes, if required by your state. Most states follow federal filing and amendment rules, meaning changes to a federal return usually require corresponding state amendments. Each state has its own deadlines, penalty structures, and forms, so consult your state’s tax agency for exact requirements when correcting or filing late partnership information returns.

Can I electronically file a very late 2015 Form 1065-B?

Likely not. Electronic filing for prior years is usually limited to recent tax years. For older years such as 2015, the IRS typically requires paper filing. Partnerships should mail completed returns to the Ogden, UT service center and retain certified mailing receipts for proof of timely filing and compliance documentation.

What if I discover errors after filing this late return?

File corrections using Form 1065X (Amended Return or Administrative Adjustment Request), depending on the year and situation. Clearly explain all changes and issue corrected Schedules K-1 to affected partners. Amended filings may take months to process, but they’re necessary to correct partner allocations and ensure accurate IRS records.

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