What is Form 1065 and who has to file it?

Form 1065 is the annual federal information return filed by partnerships and most multi-member LLCs. It reports the partnership's income, deductions, and losses. The partnership generally does not pay federal income tax; instead, income passes through to partners.

What is the difference between Form 1065 and Schedule K-1?

Form 1065 reports the partnership's overall activity for the year. Schedule K-1 is prepared for each individual partner, showing their specific allocated share of income and deductions to report on their personal returns.

When is the Form 1065 due?

For calendar-year partnerships, federal Form 1065 is generally due on March 15. Illinois Form IL-1065 follows a similar schedule. A six-month extension is available by filing Form 7004 before the deadline.

Does a partnership pay income tax?

Generally no. A partnership is a pass-through entity. However, Illinois partnerships must pay an entity-level replacement tax of 1.5% of net income on Form IL-1065.

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Partnership Tax Return Filing in Mokena IL

Two business partners seated across a desk from a tax advisor reviewing a printed Form 1065 draft and Schedule K-1 documents in a professional Mokena office

Partnership Tax Return Filing Assistance in Mokena, IL

Form 1065 preparation, Schedule K-1 delivery, and IL-1065 replacement tax filing for partnerships and multi-member LLCs throughout Will County.

Running a partnership or multi-member LLC means your tax filing does not stop at your own personal return. Every year, the partnership itself must file Form 1065 with the IRS and Form IL-1065 with Illinois. Then each partner receives a Schedule K-1 showing their share of the income, deductions, and credits to report on their own return. If the 1065 is late or inaccurate, every partner's personal filing is affected.

At Wozny Tax Company in Mokena, we prepare partnership returns and deliver K-1s for business owners throughout Will County and the south suburbs. Whether you operate a professional service firm, a real estate holding partnership, a family LLC, or a small business with two or more owners, we handle the complete filing from financial records to e-file confirmation.

Why partnership owners choose Wozny Tax Company:

CPA-led preparation of Form 1065, all supporting schedules, and Schedule K-1 for each partner
Illinois Form IL-1065 and replacement tax calculation included
K-1s delivered to partners in time for personal return filing
Bookkeeping coordination for businesses that need cleanup before filing
Extension filing handled proactively when needed
Year-round availability for ownership changes, estimated tax questions, and business planning
Local Mokena office serving all of Will County, with virtual appointments available

Call 1 (708) 479-1700Let Us Help

Call 1 (708) 479-1700 to schedule a business tax appointment. In-person at 9400 Bormet Dr Ste 7, Mokena, IL. Virtual appointments available.

Two business partners seated at a conference table with a completed Schedule K-1 folder open between them and composed attentive expressions

WHO THIS IS FOR

This service is designed for any business entity that files Form 1065 with the IRS. If any of the following describes your situation, you are in the right place.

Multi-member LLCs: If your LLC has two or more members and has not elected to be taxed as a corporation, it is taxed as a partnership by default and must file Form 1065
General and limited partnerships: Traditional business partnerships with two or more partners sharing profits, losses, and management responsibilities
Professional service partnerships: Consulting, medical, legal, accounting, or other professional practices organized as partnerships or LLCs
Real estate partnerships: Investors and families holding rental properties or real estate through a shared LLC or partnership structure
Family partnerships: Estate planning and income-splitting structures involving family members as partners
New businesses: First-year partnerships and LLCs that need to file an initial Form 1065 and establish their accounting method, capital accounts, and reporting structure

When to call us:

Your K-1s need to go out soon and your books are not finished
You formed a new partnership or multi-member LLC this year and are not sure how to file
You added or removed a partner and are not certain how that affects your return
You missed the March 15 filing deadline and need to understand your options
A prior-year return may contain errors and you have received an IRS or Illinois notice
Your books are incomplete or behind and you need help getting them in order before filing

PARTNERSHIP RETURNS, EXPLAINED

The information below is for educational purposes only. Tax rules change annually. Verify current-year rules and deadlines with a qualified tax professional before filing.
Partnership tax returns have their own structure, deadlines, and rules that differ from individual or corporate returns. Here is the plain-language overview.
Form 1065: The Partnership Return Form 1065 is the annual information return filed by every partnership and most multi-member LLCs. It reports the partnership's total income, deductions, gains, and losses for the year. The partnership itself generally does not pay federal income tax. Instead, income and losses pass through to the partners, who report their share on their own individual returns.
Schedule K-1: The Partner's Share Once Form 1065 is complete, the partnership prepares a Schedule K-1 for each partner. The K-1 shows each partner's allocated share of income, losses, deductions, and credits based on the ownership percentages and allocation terms in the operating agreement. Partners use their K-1 to complete their own personal returns. Inaccurate or late K-1s delay every partner's filing.
The Due Date and Extensions The federal Form 1065 deadline is generally March 15 for calendar-year partnerships. Illinois Form IL-1065 follows a similar schedule. If more time is needed, a six-month automatic extension is available by filing Form 7004 before the deadline. An extension extends the time to file but does not extend the time to pay any tax owed. Illinois replacement tax estimated payments may still be due on the original deadline.
Illinois Form IL-1065 and Replacement Tax Illinois partnerships file IL-1065 and pay a replacement tax on net income. The current replacement tax rate for partnerships is 1.5 percent of net income. Illinois also offers a Pass-Through Entity Tax election that may benefit partners in states where they can claim a credit against their individual income tax. We review PTE election eligibility as part of every Illinois partnership return. Verify current rates and eligibility with our office.
Guaranteed Payments and Distributions Partnerships may compensate active partners through guaranteed payments, which are treated as ordinary income to the receiving partner and as a deductible expense by the partnership. Distributions of previously taxed income are handled differently. Confusing these two is one of the most common errors on partnership returns and affects both the 1065 and each partner's personal return.
Partner Basis Each partner maintains a basis in their partnership interest, which determines how losses are deducted and how distributions are taxed. Basis tracking is an annual responsibility and errors compound over time. We maintain basis schedules as part of every partnership engagement.

A printed Form 1065, multiple Schedule K-1 drafts, and a partnership operating agreement spread across a tax preparation desk with a calculator and pen

OUR PROCESS

Step 1: Schedule Your Business Tax Appointment

Call 1 (708) 479-1700 or use the online form to book your appointment. Let us know you have a partnership or multi-member LLC when you schedule. We prepare for your entity type and confirm what we need before you arrive. In-person appointments are available in Mokena. Virtual appointments are available for partnership clients throughout Will County.

Step 2: Document Review and Bookkeeping Assessment

We review your financial records, prior year returns, and operating agreement at intake. If your books are incomplete or need cleanup before we can prepare the return, we identify exactly what is missing and coordinate with our bookkeeping team to get them in order. You are never told to go fix your books and come back without guidance.

Step 3: Return Preparation

Our CPA-led team prepares your federal Form 1065 and all supporting schedules including Schedule K, Schedule L, Schedule M-1, Schedule M-2, and any required forms such as Form 8825 for rental real estate. We prepare your Illinois Form IL-1065, calculate the replacement tax, and review PTE election eligibility. We prepare a Schedule K-1 for each partner with their allocated income, loss, deduction, and credit amounts.

Step 4: Review Meeting

Before we file anything, we walk you through your completed return. We explain what was prepared, how allocations were made, and what each partner can expect to see on their K-1. You have the opportunity to ask questions and request corrections before we submit.

Step 5: E-File and Extension Handling

Once the return is approved, we e-file federal and Illinois returns on your behalf. If filing before the deadline is not feasible, we file Form 7004 for an automatic six-month federal extension and the Illinois equivalent. We communicate clearly about deadlines, estimated payment obligations, and next steps.

Step 6: K-1 Delivery to Partners

After filing, we deliver completed Schedule K-1s to each partner so they can complete their personal returns without delay. For partners we also serve on the individual side, we coordinate the handoff directly.

COMMON PARTNERSHIP SITUATIONS WE HELP WITH

Standard Multi-Member LLC (Two to Four Owners, Single State)

The most common scenario we handle in Will County: a two to four member LLC operating a local business from a single Illinois location. We prepare the full 1065, allocate income and loss per the operating agreement, calculate the QBI deduction for each qualifying partner, handle the Illinois replacement tax on IL-1065, and deliver K-1s. We also review capital accounts to ensure they are tracking correctly year over year, which is a requirement under current IRS rules and a common area of error.

Partnerships with Guaranteed Payments

Professional service firms, medical practices, and consulting partnerships often pay active partners a fixed guaranteed amount regardless of overall profitability. Guaranteed payments are ordinary income to the receiving partner, subject to self-employment tax, and deductible by the partnership on Form 1065. They must be reported correctly in Schedule K-1 Box 4. We review guaranteed payment structures at intake and ensure the 1065, K-1s, and each partner's SE tax calculation are aligned.

Real Estate Partnerships and Rental Property LLCs

Investors holding rental properties through a shared LLC or partnership file Form 8825 alongside the 1065 to report rental income and expenses for each property. Depreciation schedules, passive activity loss limitations, and at-risk basis rules all come into play. We maintain depreciation schedules for every property, review passive loss carryforward availability, and coordinate with partners who need to understand how rental losses flow to their personal returns.

Ownership Changes During the Year

Adding a partner, buying out a member, or dissolving a partnership interest during the tax year requires careful treatment on the 1065. Income and loss must be allocated correctly between the old and new ownership structure. The operating agreement must reflect the change. A Section 754 election may be appropriate in some circumstances. We review ownership change situations at intake and prepare the return with accurate proration and the documentation to support it.

Multi-State Partnerships

If your partnership has partners in other states, generates revenue in multiple states, or has property or employees outside Illinois, you may have filing obligations beyond the IL-1065. Each state has its own nexus rules, apportionment methods, and filing deadlines. We identify state filing obligations based on your activity and partner locations, prepare apportionment calculations, and review composite return availability for nonresident partners where applicable.

First-Year Partnership or LLC Filing

The first Form 1065 is also where foundational elections are made: accounting method, fiscal year, and whether the partnership is indicating it is an initial return. Errors on the first filing create problems that compound in subsequent years. We prepare first-year returns with the structure and documentation that makes every subsequent year easier, including an initial capital account schedule that reflects each partner's contributions accurately.

Prior-Year Errors and Unfiled Returns

If a partnership has errors on a previously filed return, has received an IRS or Illinois Department of Revenue notice, or has not filed Form 1065 in prior years, we assess the situation and determine the appropriate path. Amended returns using Form 1065-X may be required. Penalty abatement may be available in some cases. We do not advise ignoring notices. We review the correspondence and your filing history and help you understand the options available.

"We have been using The Wozny Tax Company since it first started and have no intentions of changing. Calls are answered promptly. Copies of archived documents are provided immediately and the prices are competitive and well worth the service. We use Wozny for personal/individual; corporate; limited liability company tax preparation and filing and for payroll services." — 5-star Google review

Not sure which situation applies to your partnership? We will help you sort it out. Call 1 (708) 479-1700 to schedule a business tax appointment.

Call 1 (708) 479-1700Let Us Help

Business tax document checklist for partnership tax appointment in Mokena IL with financials and K-1 details

WHAT TO BRING TO YOUR PARTNERSHIP TAX APPOINTMENT

We send every partnership client a document checklist before their appointment. Here is what most partnerships need to gather.

For all partnerships and multi-member LLCs:

Current operating agreement or partnership agreement, including any amendments showing current ownership percentages
Prior year federal Form 1065 and all K-1s (new clients)
Prior year Illinois Form IL-1065 (new clients)
Federal EIN confirmation letter
Profit and loss statement for the current tax year
Balance sheet as of year-end
Bank and credit card statements for the full year
General ledger or bookkeeping file (QuickBooks, Wave, or equivalent)
Records of all capital contributions made by partners during the year
Records of all distributions made to partners during the year
Records of guaranteed payments made to active partners
1099-NEC, 1099-MISC, and 1099-K forms received
1099-NECs issued to any contractors paid $600 or more
Payroll records and W-2s if the partnership has employees

For deductions and asset tracking:

Depreciation schedules from prior year
Records of any asset purchases or disposals during the year
Vehicle mileage logs if business vehicles are used
Records of business meals, travel, and marketing expenses
Home office records if any partner maintains a qualifying home office
Records of charitable contributions made in the partnership's name

For real estate partnerships:

Income and expense statements for each rental property
Mortgage and loan statements per property
Capital improvement records per property
Closing statements for any properties purchased or sold during the year
Form 1099-MISC from property managers if applicable

For partnerships with ownership changes:

Amended operating agreement reflecting the change
Buy-sell agreement or dissolution documents
Valuation or appraisal documentation if relevant
Dates of admission or withdrawal

For multi-state partnerships:

State-by-state revenue, payroll, and property allocation data
Addresses and residency information for all nonresident partners
Prior year state filings for each applicable state

For new partnerships:

Articles of Organization (for LLCs)
EIN confirmation letter (SS-4 or CP-575 notice)
Records of all financial activity from formation date through year-end

FREQUENTLY ASKED QUESTIONS

The information below is for educational purposes only. Partnership tax rules and deadlines change annually. Verify current-year rules with a qualified tax professional before filing. Individual circumstances vary. This page does not constitute tax or legal advice.

Form 1065 is the annual federal information return filed by partnerships and most multi-member LLCs. It reports the partnership's income, deductions, gains, losses, and credits for the year. A multi-member LLC is generally classified as a partnership for tax purposes unless it has made a corporate election using Form 8832. The partnership itself generally does not pay federal income tax at the entity level; income passes through to partners who report their shares on their individual returns.

For calendar-year partnerships, the federal Form 1065 is generally due on March 15. The Illinois Form IL-1065 follows a similar deadline. If an extension is needed, an automatic six-month extension is available by filing Form 7004 before the original deadline. An extension gives more time to file the return but does not extend the time to pay any tax or replacement tax owed. Verify current-year deadlines with our office before filing.

The IRS currently assesses a penalty for each month a Form 1065 is filed late, multiplied by the number of partners. The penalty applies per partner per month, which means even a modest delay on a multi-partner return can accumulate quickly. First-time penalty abatement may be available for partnerships with a clean prior compliance history. Verify current penalty rates with our office, as amounts are updated annually.

Generally no. A partnership is a pass-through entity. Income and losses are allocated to partners who report them on their own individual returns and pay tax at their individual rates. However, Illinois partnerships do pay an entity-level replacement tax at a rate of 1.5 percent of net income on Form IL-1065. Illinois also offers a Pass-Through Entity Tax election that may benefit certain partners. Verify current rates and eligibility.

Illinois partnerships file Form IL-1065 and pay a replacement tax, which is an entity-level tax on net income calculated at 1.5 percent for partnerships and S corporations. This is separate from the income each partner reports on their personal Illinois return. Illinois also offers a PTE tax election that some partnerships may elect to reduce individual partner tax burdens in states that allow a credit. We review PTE eligibility for every Illinois partnership we serve.

Ownership changes mid-year require careful allocation of income and loss between the old and new ownership structure, updated K-1s reflecting each partner's period of participation, and a current operating agreement that reflects the change. A Section 754 election may be worth considering in certain situations. Filing the return without addressing the ownership change correctly can create errors that require amended returns to resolve. We review ownership change situations at intake before beginning preparation.

General partners and active members of an LLC taxed as a partnership may be subject to self-employment tax on their distributive share of net earnings from self-employment. Limited partners are generally not subject to SE tax on their distributive share, though the rules are nuanced and depend on the level of participation. Guaranteed payments to any partner are always subject to SE tax. We review SE tax applicability for each partner's situation as part of return preparation

Tax software typically does not support Form 1065 in consumer products. Professional preparation software is required for partnership returns, and the complexity of allocations, capital accounts, guaranteed payments, basis tracking, depreciation schedules, and state filings makes self-preparation high-risk for most partnerships. An error on the 1065 affects every partner's personal return. We are happy to discuss your specific situation and complexity before you decide.

Unfiled partnership returns should be addressed promptly. Late 1065 filings accumulate penalties per partner per month, and partners cannot accurately complete their own personal returns without their K-1s. We review your filing history, assess the situation, and determine whether amended returns or delinquent filings are needed. We also review whether penalty abatement is available. Do not ignore notices from the IRS or Illinois Department of Revenue; contact us to discuss your options.

What Our Clients Say

⭐⭐⭐⭐⭐ Google review

“We have been using The Wozny Tax Company since it first started and have no intentions of changing. Calls are answered promptly. Copies of archived documents are provided immediately and the prices are competitive and well worth the service. We use Wozny for personal/individual; corporate; limited liability company tax preparation and filing and for payroll services. If I could praise them more I would!”

⭐⭐⭐⭐⭐ Google review

“The Wozny Tax Company was professional and thorough with our business tax returns. They took the time to explain everything to us in detail. We will be setting up a meeting to do our business bookkeeping as well.”

⭐⭐⭐⭐⭐ Google review

“The team are fantastic. They have handled our personal and business taxes for the last two years in addition to accounting consulting and they are extremely thorough, prompt, and helpful during all steps of the process.”

SERVING PARTNERSHIP CLIENTS THROUGHOUT WILL COUNTY

Wozny Tax Company is located at 9400 Bormet Dr Ste 7, Mokena, IL 60448, at the center of Will County's south suburban business community. We prepare partnership returns and multi-member LLC filings for business owners throughout the region. If your partnership operates in or near any of the communities below, we are a locally accessible option for in-person business tax preparation.

Primary service area: Mokena | Frankfort | New Lenox | Orland Park | Tinley Park

No local competitor in the south suburbs has built a dedicated, detailed service page for partnership and multi-member LLC tax preparation. We have. Virtual appointments are available for partnership clients throughout Will County and Illinois who prefer remote consultations.

Directions: From Frankfort: take Lincoln Highway north and turn onto Bormet Drive. Suite 7 is on your left. From New Lenox: head west on Route 30 to Bormet Drive, then north. From Tinley Park or Orland Park: travel south on La Grange Road toward Mokena.

A clean commercial street with small businesses and well-maintained storefronts along a main road on a sunny afternoon in New Lenox Illinois

ABOUT WOZNY TAX COMPANY

Wozny Tax Company has been preparing business, partnership, and individual returns for clients throughout Will County and the south suburbs since 2014. We are a locally owned, third-generation tax firm with a CPA-led team and more than 80 combined years of tax preparation experience on staff.

We serve more than 3,500 returning clients and maintain a strong record of five-star reviews from business owners who cite our thoroughness, responsiveness, clear explanations, and the depth of attention we bring to business tax returns. Our business clients consistently note that we do not just file their return and move on. We explain what was prepared, answer questions at every stage, and stay available year-round for the situations that do not wait until April.

We are a full-service firm. If your partnership also needs bookkeeping support, payroll administration, or individual return preparation for partners, we coordinate all of it under one roof. No juggling multiple vendors. No gaps in communication.

READY TO GET YOUR PARTNERSHIP RETURN FILED?

Every day you wait on your 1065 is another day your partners are waiting on their K-1s. Let us take the complexity off your plate.

Whether you are filing on time, filing an extension, cleaning up a prior year, or navigating a new partnership structure, Wozny Tax Company is ready. Business tax appointments during peak season fill quickly. Call now to secure your spot before the March 15 deadline.

Call 1 (708) 479-1700 to schedule a business tax appointment

Call 1 (708) 479-1700Let Us Help

Wozny Tax Company 9400 Bormet Dr Ste 7 Mokena, IL 60448 Phone: 1 (708) 479-1700
In-person appointments available in Mokena, IL. Virtual appointments available throughout Will County and Illinois.
[Contact] | [About] | [Service Areas] | [FAQs]

This page provides general tax education and is not a substitute for professional tax advice tailored to your specific situation. Tax rules, deadlines, and penalty amounts change annually and should be verified against current IRS and Illinois Department of Revenue guidance for the applicable tax year. Filing an extension extends the time to file, not the time to pay any taxes owed. Wozny Tax Company does not guarantee specific tax outcomes, penalty results, or IRS responses. For legal matters, consult a licensed attorney. Individual results vary.

Tax Preparation Service Area From Our Mokena, IL Office

Let our Certified Public Accountants along with our full service team help make your business more successful so you can achieve the financial success you deserve.

Address

The Wozny Tax Company
9400 Bormet Dr, Suite 7, Mokena, IL 60448

Phone: 708.479.1700

Business Hours

Monday: 8:00 AM–8:00 PM
Tuesday: 8:00 AM–8:00 PM
Wednesday: 8:00 AM–8:00 PM
Thursday: 8:00 AM–8:00 PM
Friday: 8:00 AM–8:00 PM
Saturday: 8:00 AM–8:00 PM
Sunday: Closed

Service Area

Serving clients from Joliet, Mokena, Hinsdale, Oak Park, New Lenox, Homer Glen, Naperville, Plainfield, Bolingbrook, Orland Park, Tinley Park, Downers Grove, Oak Lawn, and Manhattan.

Book My Tax Consultation

Partnership Tax Return Filing Assistance in Mokena, IL

WHO THIS IS FOR

PARTNERSHIP RETURNS, EXPLAINED

OUR PROCESS

Step 1: Schedule Your Business Tax Appointment

Step 2: Document Review and Bookkeeping Assessment

Step 3: Return Preparation

Step 4: Review Meeting

Step 5: E-File and Extension Handling

Step 6: K-1 Delivery to Partners

COMMON PARTNERSHIP SITUATIONS WE HELP WITH

Standard Multi-Member LLC (Two to Four Owners, Single State)

Partnerships with Guaranteed Payments

Real Estate Partnerships and Rental Property LLCs

Ownership Changes During the Year

Multi-State Partnerships

First-Year Partnership or LLC Filing

Prior-Year Errors and Unfiled Returns

WHAT TO BRING TO YOUR PARTNERSHIP TAX APPOINTMENT

For all partnerships and multi-member LLCs:

For deductions and asset tracking:

For real estate partnerships:

For partnerships with ownership changes:

For multi-state partnerships:

For new partnerships:

FREQUENTLY ASKED QUESTIONS

What Our Clients Say

SERVING PARTNERSHIP CLIENTS THROUGHOUT WILL COUNTY

ABOUT WOZNY TAX COMPANY

READY TO GET YOUR PARTNERSHIP RETURN FILED?

Business Hours

Accounting Services

Tax Preparation Services