Partnerships are easy to form, no formal declaration of intent to form is required, and they are flexible to fit any partnership's purpose. A partnership may need to amend a California tax return because of an error or the partnership's federal return may be changed, thus affecting the state return.
File an amended Form 565 for each affected partner. Check the “Amended Return” box on Form 565, Side 1, Item I(3). Form 565 is used to report income, losses, deductions and gains from the operation of a partnership.
File an amended paper Schedule K-1 (565). Check Side 1, Item H (2). Schedule K-1 lists the partner's share of income, deductions and credits.
Give a corrected Schedule K-1 (565) labeled “Amended” to each affected partner. Remember that a partnership's profits and losses are taxed as the partner's personal income, therefore any affected partner's tax return may also need to be amended. If the partnership originally filed a group nonresident partner Form 540NR, the partnership should file an amended Form 540NR.
- According to the California Franchise Tax Board, if the partnership is filing an amendment because of changes to its federal return, "the partnership must file an amended return within six months of the final federal adjustments. The partnership should attach a copy of the federal Revenue Agent's Report or other notice of the adjustments to the amended return."
- If you have any questions about filing an amended California partnership income tax return, consult a licensed tax professional.
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