Is Schedule K-1 needed

[tax newbie1]

This is a really dumb question, but I cannot find it in publication. If a partnership has revenues and expenses net to zero and no sec.179, do I need to attached form Schedule K-1 with the form 1065 to file with the IRS?

Thanks,

[ILLMAS]

To be on the safe side, I would say YES, you do want to show the IRS that are more then 2 partners. I seen a return where the preparer put only 1 (100% owner) partner and right away the IRS sent them a letter saying it had to have more then 2 partners to be considered a partnership...... If I remember correctly, the IRS wanted for future returns to be reported on Sch-C.

[tax newbie1]

Thank you so much for your help.

[jainen]

>>revenues and expenses net to zero<<

Exactly zero? That sounds odd to me. Anyway, Schedule K-1 (Form 1065) is a required part of the tax return. The instructions to Form 1065 say, "Attach a copy of each Schedule K-1 to the Form 1065 filed with the IRS."

[michaelmars]

how else does the partner know that there is nothing for htem to report unless you send out a k-1