When two or more individuals work together on a business, they form a partnership and each contributes their time, talents, resources, and/or money. They thus receive a cut of the company’s gains and losses. Due to the fact that they do not pay income tax, partnerships must file information returns. Profits and losses are instead distributed to the partners, who then submit their own tax returns.
A Partnership firm may require the following forms:
- The annual return of income:
- Employment taxes:
The individual Partners may require the following forms:
- Income tax:
- Self-employment tax:
- Estimated tax:
Source: Internal Revenue Service
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