Which entity type typically files a Form 1065?

Form 1065 is specifically designed for partnerships to report their income, deductions, gains, and losses from their operations. This form helps provide a complete picture of the financial activities of a partnership, which is not taxed at the entity level but instead passes any income or losses through to the individual partners who report it on their personal tax returns.

Partnerships, which are entities with two or more owners, are required to use this form to detail their financial results and to allocate income or losses to each partner based on their partnership agreement. This is essential as it maintains transparency and compliance with tax regulations regarding how profits are shared among partners.

In contrast, sole proprietorships report their income and expenses on a different form, usually a Schedule C attached to the owner’s personal tax return. Corporations file either Form 1120 or Form 1120-S depending on whether they are C corporations or S corporations, respectively. Non-profit organizations have their own specific forms, primarily Form 990, to report financial information to ensure compliance with tax-exempt regulations. Understanding these distinctions is crucial for correctly identifying which entities file which tax forms.