Partnership Required to File?

[codeblue123]

Partnership has less than $100 in expenses & no income, is it required to file a 1065 tax return?  Per IRS instructions: A domestic partnership must file an information return, unless it neither receives gross income nor pays or incurs any amount treated as a deduction or credit for federal tax purposes.  Can they just not deduct those expenses and not be required to file a tax return?

[George4Tacks · Accepted solution]

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@codeblue123 wrote:

Partnership has less than $100 in expenses & no income, is it required to file a 1065 tax return?  Per IRS instructions: A domestic partnership must file an information return, unless it neither receives gross income nor pays or incurs any amount treated as a deduction or credit for federal tax purposes.  Can they just not deduct those expenses and not be required to file a tax return?

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I read the instructions as you stated them as you gotta file. Consider the penalty for not filing - "

Failure To Furnish Information Timely

For each failure to furnish Schedule K-1 to a partner when due and each failure to include on Schedule K-1 all the information required to be shown (or the inclusion of incorrect information), a $280 penalty may be imposed for each Schedule K-1 for which a failure occurs. The maximum penalty is $3,426,000 for all such failures during a calendar year. If the requirement to report correct information is intentionally disregarded, each $280 penalty is increased to $570 or, if greater, 10% of the aggregate amount of items required to be reported. There is no limit to the amount of the penalty in the case of intentional disregard."