Which tax form must partnerships file?

Partnerships are required to file Form 1065, also known as the U.S. Return of Partnership Income. This form is specifically designed for partnerships to report their income, deductions, gains, losses, and other relevant financial information. Unlike corporations, partnerships do not pay income taxes at the entity level; instead, they are pass-through entities. This means that the income passes through to the partners, who then report it on their individual tax returns. Filing Form 1065 allows the partnership to formally report its financial activity to the IRS while also providing each partner with a Schedule K-1, which outlines their share of the partnership's income, deductions, and credits that they must report on their personal tax returns.

Form 1120 is used by corporations to report their income, which does not apply to partnerships. Form 1040 is the standard individual income tax return form, used by individual taxpayers. Form 1041 is utilized for estates and trusts to report income that is taxable, which is also not relevant to partnerships. Therefore, Form 1065 is the correct form that partnerships must file.