Federal U.S. Return of Income for Electing Large Partnerships

U.S. Return of Income for Electing Large Partnerships
Schedule B-1 (Form 1065)  (Rev. August 2019)
SCHEDULE B-1
(Form 1065)
(Rev. August 2019)
Department of the Treasury
Internal Revenue Service
Name of partnership

Part I

Information on Partners Owning 50% or
More of the Partnership

OMB No. 1545-0123

▶ Attach

to Form 1065.
▶ Go to www.irs.gov/Form1065 for the latest information.

Employer identification number (EIN)

Entities Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 2a (Question 3a for
2009 through 2017))

Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including any entity treated as a
partnership), trust, tax-exempt organization, or any foreign government that owns, directly or indirectly, an interest of 50% or more in
the profit, loss, or capital of the partnership (see instructions).
(i) Name of Entity

Part II

(ii) Employer
Identification Number
(if any)

(iii) Type of Entity

(iv)
Country of Organization

(v) Maximum
Percentage Owned
in Profit, Loss,
or Capital

Individuals or Estates Owning 50% or More of the Partnership (Form 1065, Schedule B, Question 2b
(Question 3b for 2009 through 2017))

Complete columns (i) through (iv) below for any individual or estate that owns, directly or indirectly, an interest of 50% or more in the
profit, loss, or capital of the partnership (see instructions).
(i) Name of Individual or Estate

(ii) Identifying Number
(if any)

For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

(iii) Country of Citizenship (see instructions)

Cat. No. 49842K

(iv) Maximum
Percentage Owned in
Profit, Loss,
or Capital

Schedule B-1 (Form 1065) (Rev. 8-2019)

Page 2

Schedule B-1 (Form 1065) (Rev. 8-2019)

General Instructions
Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments
For the latest information about developments related to
Schedule B-1 (Form 1065) and its instructions, such as
legislation enacted after the form and instructions were
published, go to www.irs.gov/Form1065.

Purpose of Form
Use Schedule B-1 (Form 1065) to provide the information
applicable to certain entities, individuals, and estates that own,
directly or indirectly, an interest of 50% or more in the profit,
loss, or capital of the partnership.

Who Must File
Schedule B-1 (Form 1065) must be filed by all partnerships that
answer “Yes” to question 2a or question 2b (question 3a or
question 3b for 2009 through 2017) on Form 1065, Schedule B.
Attach Schedule B-1 to Form 1065.

Specific Instructions
Part I
Complete Part I if the partnership answered “Yes” to Form
1065, Schedule B, question 2a (question 3a for 2009 through
2017). List each corporation, partnership, trust, tax-exempt
organization, or foreign government owning, directly or
indirectly, an interest of 50% or more in the profit, loss, or
capital of the partnership at the end of the tax year. Enter the
name, EIN, type of entity (corporation, partnership, trust, taxexempt organization, or foreign government), country of
organization, and the maximum percentage interests owned,
directly or indirectly, in the profit, loss, or capital of the
partnership. For an affiliated group filing a consolidated tax
return, list the parent corporation rather than the subsidiary
members. List the entity owner of a disregarded entity rather
than the disregarded entity. If the owner of a disregarded entity
is an individual rather than an entity, list the individual in Part II.
In the case of a tax-exempt organization, enter “tax-exempt
organization” in column (iii).

Example 1. Corporation A owns, directly, an interest of 50%
in the profit, loss, or capital of Partnership B. Corporation A
also owns, directly, an interest of 15% in the profit, loss, or
capital of Partnership C. Partnership B owns, directly, an
interest of 70% in the profit, loss, or capital of Partnership C.
Therefore, Corporation A owns, directly or indirectly, an
interest of 50% in the profit, loss, or capital of Partnership C
(15% directly and 35% indirectly through Partnership B). On
Partnership C’s Form 1065, it must answer “Yes” to question
2a (question 3a for 2009 through 2017) of Schedule B.
Partnership C must also complete Part I of Schedule B-1. In
Part I, Partnership C must identify Corporation A, which includes
entering “50%” in column (v) (its maximum percentage owned).
It also must identify Partnership B, and enter “70%” in column
(v).

Part II
Complete Part II if the partnership answered “Yes” to Form
1065, Schedule B, question 2b (question 3b for 2009 through
2017). List each individual or estate owning, directly or
indirectly, an interest of 50% or more in the profit, loss, or
capital of the partnership at the end of the tax year. Enter the
name, social security or employer identification number, country
of citizenship (for an estate, the citizenship of the decedent),
and the maximum percentage interests owned, directly or
indirectly, in the profit, loss, or capital of the partnership.
Example 2. A owns, directly, 50% of the profit, loss, or capital
of Partnership X. B, the daughter of A, does not own, directly,
any interest in X and does not own, indirectly, any interest in X
through any entity (corporation, partnership, trust, or estate).
Because family attribution rules apply only when an individual
(in this example, B) owns a direct interest in the partnership or
an indirect interest through another entity, A’s interest in
Partnership X is not attributable to B. On Partnership X’s Form
1065, it must answer “Yes” to question 2b (question 3b for 2009
through 2017) of Schedule B. Partnership X must also complete
Part II of Schedule B-1. In Part II, Partnership X must identify A,
which includes entering “50%” in column (iv). Partnership X will
not identify B in Part II.