Partnerships and multi-member LLCs file Form 1065 even though the partnership itself pays no income tax. The penalties for getting it wrong are calculated per partner, so they grow quickly.
This guide explains who files, the due date and extension, how the per-partner penalty works with a worked example, and how Schedule K-1 connects to partners' returns, using the IRS 2025 Instructions for Form 1065.
The IRS says every domestic partnership must file Form 1065 unless it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes. LLCs classified as partnerships have the same filing requirements, and a domestic LLC with at least two members that does not file Form 8832 is classified as a partnership. Form 1065 is an information return, and each partner receives a Schedule K-1. A partnership certified as a qualified opportunity fund must file even with no income or expenses.
| Item | Rule (2025 instructions) |
|---|---|
| Due date | The 15th day of the 3rd month after the tax year ends; March 15 for calendar-year partnerships |
| 2025 calendar-year return | March 16, 2026, because March 15 fell on a Sunday |
| Weekend or holiday | The next day that is not a Saturday, Sunday or legal holiday is timely |
| Extension | File Form 7004 by the regular due date |
The 2025 Form 1065 covers calendar year 2025 and fiscal years that begin in 2025 and end in 2026. See our filing deadline guide for individual dates and our Form 941 guide if the partnership has employees.
| Failure | Penalty (IRS) |
|---|---|
| Late return or missing information | $255 per partner for each month or part of a month, up to 12 months |
| Not furnishing a correct Schedule K-1 (or K-3) to a partner on time | $340 per Schedule K-1, rising to $680 or 10% of the amounts if intentionally disregarded |
Our illustration: a partnership with 4 partners that files 3 months late faces $255 x 4 x 3 = $3,060, and the 12-month maximum for 4 partners is $12,240. The penalty can be waived for reasonable cause; do not attach an explanation when filing, and respond if the IRS sends a notice. See our penalty abatement guide.
Next-year note: Rev. Proc. 2025-32 sets the per-partner late-filing amount at $260 (instead of $255) for returns required to be filed in 2027, which covers the 2026 tax year (due Monday, March 15, 2027). The $340 Schedule K-1 amount is the same in that notice. The 2026 Form 1065 instructions were not yet published when we checked on 26 October 2026, so confirm the figure there.
Each partner gets a Schedule K-1 from the partnership; the IRS penalizes a partnership that does not furnish one correctly and on time. For how partners report related income see our Schedule E guide and Schedule SE guide. Compare entity choices in our sole proprietor, LLC and S corp comparison.
IRS: Instructions for Form 1065, U.S. Return of Partnership Income, IRS: Form 1065.