1065

Additional Information for Schedule M-3 Filers

Agency
IRS
Revision
Rev. December 2014
Fillable fields
14
Pages
1
Official source
IRS form page
Checked
October 21, 2026
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Schedule C (Form 1065): Additional Information for Schedule M-3 Filers

Schedule C (Form 1065), Additional Information for Schedule M-3 Filers, is a one-page schedule attached to Form 1065, U.S. Return of Partnership Income. The IRS About page says some filers of Schedule M-3 (Form 1065), Net Income (Loss) Reconciliation for Certain Partnerships, use Schedule C (Form 1065) to provide answers to additional questions.

After the partnership's name and employer identification number, the schedule asks six yes or no questions about the tax year: transfers between the partnership and its partners, disproportionate allocations from another partnership, sales or purchases of intangible assets with related persons, and changes in accounting principle or tax accounting method. The form says to see separate instructions.

The current revision is December 2014. You can fill out Schedule C free in your browser on this page and download it without an account.

What's on Schedule C (Form 1065)

Header

The name of the partnership and its employer identification number, with Yes and No columns for the questions.

Line 1: transfers with partners

Whether there were transfers between the partnership and its partners subject to the disclosure requirements of Regulations section 1.707-8.

Line 2: disproportionate allocations

Whether amounts on Schedule M-3, Part II, lines 7 or 8, column (d), reflect allocations from another partnership that are disproportionate to this partnership's share of capital or sharing ratio there.

Lines 3 and 4: intangible assets

Whether the partnership sold, exchanged or transferred any interest in an intangible asset to a related person, or acquired one from a related person, as defined in sections 267(b) and 707(b)(1).

Line 5: accounting principle

Whether the partnership made any change in accounting principle for financial accounting purposes.

Line 6: tax accounting method

Whether the partnership made any change in a method of accounting for U.S. income tax purposes.

How to fill out Schedule C (Form 1065)

  1. 1

    Header

    Enter the name of the partnership and its employer identification number.

  2. 2

    Line 1

    Check Yes or No for whether, at any time during the tax year, there were transfers between the partnership and its partners subject to the disclosure requirements of Regulations section 1.707-8.

  3. 3

    Line 2

    Look at Schedule M-3, Part II, lines 7 and 8, column (d). Check Yes if any amount there reflects disproportionate allocations from another partnership; otherwise check No.

  4. 4

    Lines 3 and 4

    Check Yes or No for a sale, exchange or transfer of an intangible asset interest to a related person (line 3) and an acquisition of one from a related person (line 4), using the definitions in sections 267(b) and 707(b)(1).

  5. 5

    Lines 5 and 6

    Answer whether the partnership changed an accounting principle for financial accounting purposes (line 5) or a method of accounting for U.S. income tax purposes (line 6). The form says to see the instructions for the definition of change in accounting principle.

  6. 6

    Attach it

    Attach the completed schedule to Form 1065.

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Where it goes and what to know

Attach to Form 1065

The form says to attach it to Form 1065, the partnership's return.

Instructions

The form says to see separate instructions and that information about Schedule C (Form 1065) and its instructions is at www.irs.gov/form1065.

Paperwork Reduction Act Notice

The form points to the Instructions for Form 1065 for the Paperwork Reduction Act Notice.

Revision

The PDF linked from the IRS About page for Form 1065 is the December 2014 revision.

Related forms

Who fills out Schedule C (Form 1065)?

  • Some Schedule M-3 filers

    The About page says some filers of Schedule M-3 (Form 1065) use Schedule C to answer additional questions. The form's title names it Additional Information for Schedule M-3 Filers.

  • The partnership named at the top

    The schedule asks for the name of the partnership and its employer identification number, and every question is about what the partnership did during the tax year.

  • Filed with Form 1065

    The form says to attach it to Form 1065, the partnership's return.

  • Which M-3 filers use it

    The form says to see separate instructions. The About page does not list a separate instructions file for Schedule C, and points to the Instructions for Form 1065 for the return.

The partnership completes the schedule about its own tax year and attaches it to its Form 1065, which goes to the IRS.

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Questions about Form 1065

Who uses Schedule C (Form 1065)?

The IRS About page says some filers of Schedule M-3 (Form 1065) use Schedule C to provide answers to additional questions. The form says to see separate instructions.

What does Schedule C (Form 1065) ask?

Six yes or no questions about the tax year: partner transfers under Regulations section 1.707-8, disproportionate allocations from another partnership, intangible assets sold to or bought from related persons, and accounting changes.

Where does Schedule C (Form 1065) go?

The form says to attach it to Form 1065.

What is a related person on lines 3 and 4?

The form says a related person as defined in sections 267(b) and 707(b)(1).

Does line 2 depend on Schedule M-3?

Yes. Line 2 asks about amounts reported on Schedule M-3, Part II, lines 7 or 8, column (d).