Partnerships in the United States are required to file IRS Form 1065 annually to report their income, deductions, gains, and losses. Although partnerships themselves typically don’t pay income tax, they must file this information return and provide each partner with a Schedule K‑1, which reflects their share of the partnership’s income and deductions. Missing the Form 1065 or Schedule K‑1 deadlines can lead to significant IRS penalties and delays for individual taxpayers. This blog breaks down the 2025 deadlines, extension options, and best practices to ensure timely compliance.
📆 Original Filing Deadline for Form 1065
For calendar-year partnerships, the original due date for filing Form 1065 is March 15 following the end of the tax year. This ensures partners have enough time to use their K‑1s for their individual income tax returns. For the 2024 tax year:
- The due date is March 17, 2025 (since March 15 is a Saturday).
- This applies to domestic partnerships using a December 31 year-end.
📅 Fiscal-Year Partnerships: Custom Deadlines
If the partnership uses a fiscal year instead of a calendar year, Form 1065 must be filed by the 15th day of the third month after the close of the fiscal year. Examples:
- Year-end of June 30, 2025 → Form 1065 is due by September 15, 2025.
- Year-end of September 30, 2025 → Due by December 15, 2025.
📝 How to Request an Extension with Form 7004
If more time is needed to complete Form 1065, partnerships can file Form 7004 to request an automatic 6-month extension. Key facts include:
- Form 7004 must be filed on or before the original due date (March 15 or 15th of third month).
- This extends the due date to September 15, 2025 for calendar-year partnerships.
- While the extension gives more time to file Form 1065, it also extends the K‑1 issuance deadline.
- There is no extension for tax payments due by partners on their own returns — they must estimate based on expected K‑1 values.
📤 Issuing Schedule K‑1 to Partners
Each partner must receive a Schedule K‑1 by the same deadline as Form 1065 (original or extended). Schedule K‑1 details the partner’s share of income, losses, deductions, and credits. It’s essential for accurate filing of the partner’s individual or corporate tax return.
- March 15, 2025 for on-time filings without an extension.
- September 15, 2025 if the partnership files Form 7004 for an extension.
- Failure to timely issue K‑1s can delay personal return filings and trigger penalties.
⏱️ IRS Late Filing Penalties for Form 1065
The IRS imposes penalties on partnerships that fail to file Form 1065 or issue Schedule K‑1s on time. The 2025 penalty is:
- $220 per partner per month, for up to 12 months.
- Applies even if the partnership has no income or tax liability.
- Penalty begins accruing the day after the deadline.
📌 Summary of Key Deadlines (Calendar-Year Partnership)
| Action | Deadline |
|---|---|
| File Form 1065 (original) | March 15, 2025 (March 17, 2025 due to weekend) |
| Issue Schedule K‑1 to partners | March 15, 2025 (or extended date) |
| File Form 7004 for extension | On or before March 15, 2025 |
| File Form 1065 (extended) | September 15, 2025 |
| Issue K‑1s (extended deadline) | September 15, 2025 |
🛡️ Best Practices for Timely Compliance
- Start preparing Form 1065 and K‑1s in January to avoid last-minute filing rushes.
- Use cloud-based accounting software to track partner allocations and pass-through items.
- Communicate early with tax professionals and partners regarding extension expectations.
- Maintain thorough documentation in case of IRS audit or penalty relief requests.
🧠 Conclusion
Partnerships must adhere to strict deadlines when filing Form 1065 and distributing Schedule K‑1s. Whether operating on a calendar or fiscal year, missing these deadlines can result in steep per-partner penalties. Filing Form 7004 offers valuable extra time but does not remove the obligation to issue timely and accurate K‑1s. Planning early, tracking deadlines, and coordinating closely with a qualified tax professional will help partnerships remain compliant and avoid unnecessary penalties in the 2025 tax year.
