Fill Out DD Form 1065
Business owners must fill out a different set of tax forms based on their situation. Fill out Form 1065 if you are part of a business partnership. The form is supplied by the Internal Revenue Service and must be filed with that agency. Form 1065, also called the U.S. Return of Partnership Form, reports any income, gains, losses, credits and deductions you may have incurred from being part owner of a business. Like other tax forms, Form 1065 is due by April 15 of the filing year.
Instructions
1. Place the label sticker from the form package if the form was mailed to you from the IRS, in the top section. If the form wasn't mailed to your or the label information isn't correct, print the principal business activity, principal product or service, business code number, name of the partnership, address, city, state, ZIP code, EIN (Employer Identification Number), the date the business was started and the total assets.
2. Check the type of return you are filing in Section G. The options are "Initial return," "Final return," "Name change," "Address change," "Amended return" and "Technical termination."
3. Write your accounting method (cash, accrual or other) in Section H.
4. Write the amount of Schedules K-1 you will be filing on line I. You must attach a Schedule K-1 for each partner in the business for the tax year. Check the box on line J if you are attaching schedules C and M-3 along with the 1065 form.
5. Enter in the income information on lines 1 through 8 in the "Income" section. Write in the gross receipts or sales on line 1a. Write in the amount of any returns and allowances on line 1b. Subtract line 1b from 1a and write the amount on line 1c. Enter the amount of cost of goods sold from line 8 of the "Schedule A" form on line 2. Subtract line 2 from line 1c and write the amount on line 3; this is your gross profit. Write any ordinary income from other businesses, partnerships, estates and trusts on line 4. Write in the net profit from a farm on line 5. Write in the net gain from the 4797 form on line 6. Write any other income you have on line 7. Calculate the total from lines 3 through 7 and write it on line 8; this is your total income.
6. Calculate your deductions. Write in wages paid to employees of the business, other than partners, on line 9. Write in partners' payments and wages in line 10. Write in expenses from repairs and maintenance done to the business location on line 11. Write in the amount of bad debts that the business incurred during the tax year on line 12. Write in the total amount of rent paid for the business location on line 13. Write in the amount business paid for taxes and licenses on line 14. Write in the amount of interest paid on business loans and credit accounts on line 15.
Calculate depreciation for the business equipment and vehicles and write it on lines 16a, 16b and 16c. Write in expenses for depletion, retirement plans, employee benefit programs and other deductions on lines 17 through 20. Add all of the lines together and write the amount on line 21. Subtract line 21 from line 8 and write it on line 22.
7. Sign and date the form at the bottom. If an outside paid preparer is filing the form for you, have her sign in the section under your signature. Check "Yes" in the box next to your name if you authorize the IRS to discuss the form with the preparer.
8. Calculate the cost of goods sold in the "Schedule A" section. Use your accounting records and books for this information.
9. Enter in the information about the business (type of entity, partnership information and information of all of the businesses included in the partnership) in the "Schedule B" section of the form.
10. Calculate the income, deductions, self-employment information, credits, foreign transactions, Alternative Minimum Tax (AMT) items and other information in the "Schedule K - Partners' Distributive Share Items" section of the form.
11. Refer to your accounting books and records to fill in the "Schedule L - Balance Sheets per Books" section of the form. You will have to record your assets, liabilities and working capital.
12. Fill in the "Schedule M-1" section of the form if you didn't attach the "Schedule M-3" form. Write in expenses that you currently owe, depreciation incurred and travel and entertainment expenses.
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