According to Internal Revenue Code Section 6698 (https://www.law.cornell.edu/uscode/text/26/6698), partnerships that fail to file Form 1065 on time or fail to show all required information may be subject to a penalty. For tax year 2025, the penalty for failure to file Form 1065 is $210 per partner per month or fraction of a month that the failure continues, up to a maximum of 12 months (based on Rev. Proc. 2024-40, https://www.irs.gov/pub/irs-drop/rp-24-40.pdf). Late filing penalties may also apply, which are generally 5% of the unpaid tax for each month or part of a month that the return is late, up to a maximum of 25% of the unpaid tax.
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