Which form is primarily used by partnerships to report income, deductions, and gains?

The form used by partnerships to report income, deductions, gains, and losses is Form 1065. Partnerships are treated as pass-through entities for tax purposes, meaning that the partnership itself does not pay income tax. Instead, the profits or losses are passed through to the individual partners, who report them on their personal tax returns.

Form 1065 captures essential information about the partnership's financial activity for the tax year. It includes details about the partnership's income, expenses, and distributions to partners. This form is a crucial document as it not only informs the IRS about the financial performance of the partnership but also provides each partner with a Schedule K-1, which outlines their share of the partnership income, deductions, and credits to be reported on their personal tax returns.

The other forms are associated with different types of entities or purposes. Form 1120, for instance, is specifically for corporations to report their income and expenses. Form 1099 is used to report various types of income other than wages, salaries, and tips, and is generally used for independent contractors or for reporting certain payment types. Schedule C is utilized by sole proprietors to report income and expenses from a self-employed business. Thus, for partnerships, Form 1065 is