Even though partnerships are not subject to income tax, they are required to file income tax returns.

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Partnerships are pass-through entities, meaning that the partnership itself does not pay income tax, but rather the income flows through to the partners who pay tax on their share of the income. However, partnerships are still required to file an annual income tax return on Form 1065 to report the partnership’s income, deductions, gains, losses, and credits.

Even Though Partnerships Are Not Subject to Income Tax, They