If you are involved in a business partnership, you know that the income from your business “passes through” the partnership and is taxed as your income. Yet the IRS still requires that partnership provide a detailed report of each partner’s share of that income or loss. This is where the IRS Form 1065, detailing a partnership’s profit and losses. Schedule K-1 details how that profit or loss affects the individual partners. The partners in question should also receive copies of the Schedule K-1, in order to use that information with their individual income tax returns.