• Partnerships ( Form 1065 ), S Corporations ( Form 1120-S ), and Foreign Partnerships ( Form 8865 ) are flow through entities . These entities do not pay tax .
• Flow through entities file Form K-1s to provide the partner or shareholder ’ s share of income , gains , losses , deductions , credits and other information from the operation of the partnership .
• Form K-1s are utilized to prepare the partner or shareholder ’ s return