Partnership tax services that connect the business and its owners
From Form 1065 and K-1s to partner basis, distributions, and multi-state filings, we help you keep the partnership’s tax picture clear.
* We will contact you to arrange a call about your situation, service scope, and pricing. Specific tax advice and ongoing planning are provided under an engagement.
Partnership tax preparation & planning
One partnership return. A tax picture for every partner.
A partnership brings two or more owners together to share a business’s profits and losses. It generally files an information return and passes income, deductions, and credits through to the partners, who report those items on their own returns.
Mraz Tax Solutions LLC prepares partnership tax returns and helps coordinate the details behind each Schedule K-1: allocations, capital contributions, distributions, basis, and changes in ownership. We work with partnerships and LLCs taxed as partnerships, including multistate and international reporting needs.
Part of our complete business tax preparation and planning services for Orange County and clients nationwide.
How we help
Practical support for your business taxes.
Preparation, planning, and advice that connect your business decisions with your tax return.
Form 1065 & K-1 Preparation
We prepare the partnership information return, partner K-1s, and supporting schedules, reconciling tax reporting with the books and ownership information.
Allocations & Agreement Review
We review the tax treatment of contributions, profit-and-loss allocations, and partner payments, coordinating tax provisions with your partnership agreement and legal advisors.
Basis & Capital Accounts
We help track partner basis, capital accounts, and relevant liability changes. These are related but different measures that affect deductions, distributions, and transfers of partnership interests.
Partner Payments & Cash Flow
We distinguish guaranteed payments from distributions and allocated income, review applicable self-employment taxes, and help partners plan for estimated tax payments.
Multi-State & International Reporting
We address state sourcing and apportionment, nonresident or foreign-partner withholding, and required international schedules, including K-2 and K-3 when applicable.
Ownership Changes & Exit Planning
We review the tax effects of adding or departing partners, transferring interests, and distributing property, including whether a Section 754 election or other adjustments need consideration.
Decisions worth planning for
Keep partner expectations and tax reporting aligned.
Ownership percentages alone do not answer every partnership tax question. We review the agreement, financial records, and each partner’s circumstances before recommending a filing or planning approach.
Taxable Income and Cash Distributions Are Different
A partner can owe tax on allocated income without receiving cash. Distributions also have their own basis rules. We help coordinate estimated payments and distribution planning so owners understand their obligations before personal returns are due.
Coordinate your partner income with your personal returnPartners Generally Are Not W-2 Employees
Partners providing services to their partnership generally are self-employed rather than employees. Guaranteed payments, distributive shares, and self-employment tax treatment need individual review. We help avoid treating partner withdrawals or compensation as ordinary employee payroll.
Foreign Partners and State Taxes Need Early Attention
Income effectively connected with a U.S. trade or business can trigger Section 1446 withholding for foreign partners, including Forms 8804, 8805, and 8813 when required. California general partnerships generally do not owe the annual entity tax, while limited partnerships, LLPs, and LLCs have different requirements.
Questions & answers
Frequently Asked Questions
Business structure and tax treatment are connected, but they are not the same thing. We help you understand which rules apply to your business and its owners.
Request a free initial consultation Does the partnership pay federal income tax?
A partnership generally does not pay federal income tax on its operating income. It files Form 1065 and passes tax items through to partners. Withholding obligations, certain audit adjustments, and state entity-level taxes or fees may still create payments at the partnership level.
Do I owe tax on my K-1 if I did not receive a distribution?
Generally, yes. You report your allocated share of partnership income whether or not cash was distributed. We help partners coordinate tax estimates, available cash, and the treatment of distributions.
What changes when a partnership has a foreign partner?
Foreign partners can create additional withholding and information-reporting obligations. A partnership with effectively connected taxable income allocable to foreign partners may need Forms 8804, 8805, and 8813 under Section 1446. Other international schedules and transfer-related withholding rules may also apply.
How do we choose between a partnership and corporate taxation?
We compare ownership, capital contributions, allocation needs, compensation, self-employment taxes, state costs, and exit plans. An LLC can have partnership tax treatment, so legal structure and tax classification should be evaluated separately with appropriate tax and legal guidance.
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Get in Touch
Have any questions?
Let's talk.
Request a free initial consultation to discuss your situation, service scope, and pricing. We will contact you to arrange a call. Specific tax advice and ongoing planning are provided under the terms of an engagement.
Office visits are by appointment. We accept tax-document drop-offs after a signed engagement agreement and by prior arrangement. Please request an appointment before visiting.
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