National Tax Relief Attorney

Kenneth L. Sheppard, Jr. IRS, State, & Local  Tax Lawyer (877) 505-9455

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PARTNERSHIP INCOME TAX PREPARATION

SPEAK TO A PARTNERSHIP INCOME TAX PREPARER TODAY (877) 505-9455

 

Preparing Income Taxes for a Partnership Income

 

When preparing income taxes for filing as a Partnership a business is considered a pass-through entity by the IRS as all profits and losses of the partnership are passed through to the individual income tax returns of the partners. Preparing business income tax returns can be a daunting task for owners of small-mid size businesses, especially since the IRS is constantly changing and adding new tax laws and guidelines. The tax preparer at Sheppard Law Office works year-round handling taxes for our income tax preparation clients. We stay abreast of the current income tax provisions which impact on your partnership and thus your personal tax responsibility.

 

Partnership Income Tax Filing

The partnership is required to file an information return with the IRS. The Form 1065 Information Return discloses the income, expenses, deductions, and each partners share of the income.  A 1040 is not filed with the IRS for a partnership, since filing their share of the profits or losses is the responsibility of the partners. This filing is done on the personal income tax return of each partner.

 

Partnership IRS Schedule K-1

Schedule K-1 is completed and included with the information return filed with the IRS.  The Schedule K-1 is prepared to report each partner's share of the income, losses, deductions and credits. Additionally, a copy of the Schedule K-1 is received by each partner reporting the their share of the income, losses, deductions and credits, and must be filed along with their individual income tax returns. In an equal partnership the Schedule K-1 will report equal amounts for each partner, however it can report different amounts for each partner based on the partnership agreement.

 

Estimated Income Tax Payments

Each partner must estimate their income tax and make quarterly payments to the IRS in April, July, October, and January.

 

Pass-Through Entity

As a pass-through entity the Schedule K-1 must include all income for the partnership, even if the income is not dispersed to the partners. Any money left in the partnership is still reported on the individual income tax return of the partners.

 

 

As each small to mid-sized business owner faces unique situations, it is important to discuss your specific circumstances with an income tax preparer in order to maximize your deductions and minimize the amount you pay to the IRS. At Sheppard Tax Prep we work with taxes year-round and therefore are available to assist our clients with business and personal income tax preparation, tax planning, as well as larger tax issues.

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Tax Consultation

 

(877) 505-9455

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Sheppard Law Offices

Law offices of Columbus, Ohio based Tax lawyer  Kenneth L. Sheppard, Jr. serving clients on a national and local scale. We serve clients throughout the United States and abroad in dealing with the IRS, State, and Local taxation authorities. We have Ohio tax law offices located in Columbus, Canton, Newark, and Mt. Vernon. We handle tax issues for clients located  throughout the country, including Ohio, North Carolina, California, Florida, Illinois, Indiana, Maryland, New Jersey, New York, Pennsylvania, Texas, and Virginia.

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