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All partnership don't need to pay income tax directly

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    All partnership don't need to pay income tax directly

    I don't know much accounting. I have a question.

    All the partnership, S Corporation, LLC and LLP don't need to pay income tax directly? They "flow throw" the partnership into partner's income tax return (Form 1040)?

    Why does partnership file its own separate income tax return (Form 1065)?

    #2
    How would the partners know

    their share of income, credits and deductions without a tax return?

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      #3
      Well

      As Veritas stated, the partners would not know what to report on their own personal tax returns,

      So the partnership has to report a return providing 100% income and expenses and other important information, which then is allocated to each partners percentage , so the partner can report the appropriate income/loss, etc. on their individual form 1040.

      Sandy

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