Question

I am wondering whether a foreign partnership with US partners but without US income need to file form 1065?

Forum|Forum|6 years ago
February 18, 2020
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A foreign partnership with US investors, but don't have any US income, do I need to file form 1065 for the partnership? And I am also wondering if the partnership need to provide the K-1 to US partners. Thank you!

DavidS127

It depends. If there is no U.S. activity or connection with a U.S. trade or business whatsoever, then the foreign partnership probably does not have to file a Form 1065, and there are even exceptions income less than $20,000 if certain conditions are met. See 26 CFR § 1.6031(a)-1 - Return of partnership income for the rules on foreign partnerships.

Even if the partnership is not required to file Form 1065, the U.S. partners may be required to file Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships at this link and/or Form 8938, Statement of Specified Foreign Financial Assets.

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J

jeanettewhc91Author

Thank you so much. But if the partnership don't have to file the form 1065, that means the partnership will not provide schedule K-1 to US limited partners, is that right? Because the US partners insist we should provide the schedule K-1 to them...

DavidS127

The individual U.S. partners may be required to file Form 8865 if the partnership is not required and does not file a Form 1065. Form 8865 provides each partner with essentially the same information as Form 1065, including a K-1.

If you don't file a Form 1065, the U.S. partners may want you to provide them each with a Form 8865 return they can file, or the information necessary to complete the Form 8865.

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