Form 1065 is a tax document used by partnerships to report their income, deductions, gains, and losses to the Internal Revenue Service (IRS). This form helps the IRS understand the financial activities of the partnership, as partnerships themselves do not pay income tax. Instead, the income is passed through to the individual partners, who report it on their personal tax returns. Each partner receives a Schedule K-1 from the partnership, detailing their share of the income and deductions. This information is essential for partners to accurately report their earnings and fulfill their tax obligations.