What is the 1065 form?

The IRS 1065 form is the form used by general partnerships to file tax information with the IRS. The form is used in the manner of a pass-through or informational document, whereby the liabilities of the tax due are 'passed-through' to the members of the partnership. That is, the partnership doesnt pay taxes; the members do.

Each member of a partnership is responsible for reporting his or her proportionate share of ownership of the Income, Expenses and Capital Gains. Each member does that on his or her own 1040 tax return.

If any member fails to report these amounts, the IRS can invoke a penalty against the club. IRS form 1065 starts a paper trail with regard to the club and its members.