A partnership is the relationship between two or more people to do trade or business. Each person contributes money, property, labor or skill, and shares in the profits and losses of the business.

Publication 541, Partnerships, has information on how to:

Reporting partnership income

A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" profits or losses to its partners. Each partner reports their share of the partnership's income or loss on their personal tax return.

Partners are not employees and shouldn't be issued a Form W-2. The partnership must furnish copies of Schedule K-1 (Form 1065) to the partner. For deadlines, see About Form 1065, U.S. Return of Partnership Income.

Forms for partnerships

The partnership, as an entity, may need to file the forms below.

Annual return of income

Employment taxes

Employment taxes may include Social Security and Medicare taxes and income tax withholding.

About Form 1099-NEC, Nonemployee Compensation

Information about Form 1099-NEC, Nonemployee Compensation, including recent updates, related forms, and instructions on how to file.

E-file information returns with IRIS

E-file Form 1099 with the Information Returns Intake System (IRIS) for tax year 2022 and later.

Excise taxes

Refer to excise tax for more information.


Forms for individuals in partnerships

If you are an individual in a partnership, you may need to file the forms below.

Income tax

Self-employment tax

Estimated tax

International tax

Partnerships frequently asked questions (FAQs)