What form must partnerships file to report their income?

Partnerships are required to file Form 1065, which is the U.S. Return of Partnership Income. This form provides the partnership with a means to report its income, deductions, gains, losses, and other pertinent financial information to the IRS. Form 1065 is informational in nature, meaning it does not result in a tax liability for the partnership itself; rather, it allows the income and losses to flow through to the individual partners, who will report their respective shares on their personal tax returns.

The form helps the IRS track the financial activities of partnerships and ensures the correct amount of income is reported by each partner. Additionally, partnerships must provide each partner with a Schedule K-1, which details their share of the partnership’s income, deductions, and credits, allowing partners to report this information appropriately on their tax returns.

Other forms mentioned serve different purposes: Form 1040 is used for individual income tax returns, Form 1120 is for corporations, and Schedule E serves as an additional form for individual taxpayers to report income or loss from partnerships, among other sources, but is not used specifically for the partnership itself to report income.