March 15 Tax Deadline for Partnerships: What You Need to Know

The March 15, 2025 tax deadline is quickly approaching for partnerships and S corporations. This is one of the most important tax deadlines for businesses, as failing to file on time can result in penalties and complications.

For partnerships, this deadline applies to Form 1065, U.S. Return of Partnership Income, which is used to report income, deductions, gains, and losses for the business. Below, we break down who needs to file, how to file, and what to expect if an extension is needed.

What is Form 1065?

Form 1065 is the tax return used by partnerships to report their financial activity to the IRS. Unlike corporations, partnerships do not pay income tax at the entity level. Instead, income, losses, deductions, and credits "pass through" to the individual partners, who report their share on their personal tax returns.

A partnership must also provide each partner with Schedule K-1 (Form 1065), which outlines their share of the business’s taxable income.

Who Must File Form 1065?

The IRS requires partnerships to file Form 1065 if they meet the following criteria:

• The business is structured as a partnership, including general partnerships, limited partnerships (LPs), and limited liability partnerships (LLPs).

• The business has two or more partners (including LLCs classified as partnerships).

• The business was active during the tax year (even if it had no taxable income).

• Single-member LLCs do not file Form 1065 because they are taxed as sole proprietorships by default.

Where and How to File Form 1065

Electronic Filing (Recommended)

The IRS requires most partnerships with more than 100 partners to file electronically. However, electronic filing is encouraged for all partnerships as it speeds up processing and reduces errors.

• E-file through IRS-authorized providers such as tax software or a CPA.

• The IRS Mandates e-filing for partnerships with 100 or more partners.

  
  

Paper Filing (Optional for Small Partnerships)

Smaller partnerships can file a paper return by mailing Form 1065 to the IRS. The mailing address depends on the partnership's location:

• If filing with payment: Send it to the IRS address listed for your state on the IRS Form 1065 instructions.

• If filing without payment: Use the separate IRS mailing address for non-payment returns.

For the latest mailing addresses, visit the IRS website: IRS Form 1065 Instructions.

Penalties for Late Filing

If Form 1065 is not filed by March 15, 2025, the IRS imposes penalties:

• $220 per partner, per month the return is late (up to 12 months).

• Failure to furnish Schedule K-1s on time may result in additional penalties.

  
  

Can Partnerships File an Extension?

If your partnership needs more time to file, you can request a six-month extension by submitting Form 7004 before March 15. This extends the due date to September 15, 2025.

💡 Important: An extension only applies to filing the return. If any taxes are owed, they must still be paid by the original deadline.

Final Thoughts

With the March 15 deadline approaching, now is the time for partnerships to:

• Gather financial records and ensure Form 1065 is accurate.

• Provide Schedule K-1s to partners for their personal tax filings.

• E-file for faster processing and fewer errors.

• Request Form 7004 if more time is needed.

Filing on time ensures compliance and avoids unnecessary penalties. If you need assistance with tax filing, consult a CPA or tax professional to ensure everything is handled correctly.

For more tax compliance updates and filing tips, Bizora is here to help you stay informed.