Which IRS form is used by partnerships to report income, deductions, gains, and losses?

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Partnerships utilize Form 1065 to report their income, deductions, gains, and losses to the IRS. This form serves as an informational return, detailing the financial activities of the partnership for the tax year. Each partner then receives a Schedule K-1, which reflects their share of the partnership’s income, deductions, and credits, allowing them to report this information on their individual tax returns.

The other forms mentioned differ in their specific purposes: Form 1120 is used for corporations, Form 1040 is the individual income tax return for individuals, and Form 941 is used by employers to report payroll taxes. This clarification highlights why Form 1065 is the appropriate choice for partnerships in reporting their financial information.

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