Partnership

A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business. A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" any profits or losses to its partners. Each partner includes his or her share of the partnership's income or loss on his or her tax return.
Partners are not employees and should not be issued a Form W-2. The partnership must furnish copies of Schedule K-1 (Form 1065) to the partners by the date Form 1065 is required to be filed, including extensions.
If you are a partnership or a partner (individual) in a partnership, use the information in the charts below to help you determine some of the forms that you may be required to file.

Reference: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Partnerships

Chart 1 (Partnership)

If you are a partnership then you may be liable for...	Use Form...	Separate Instructions...
Annual return of income	1065,U.S. Return of Partnership Income (PDF)	Instructions for Form 1065 U.S. Return of Partnership Income (PDF)
Employment taxes: Social security and Medicare taxes and income tax withholding Federal unemployment (FUTA) tax Depositing employment taxes	941, Employer's Quarterly Federal Tax Return (PDF) and 943, Employer's Annual Federal Tax Return for Agricultural Employees (for farm employees) (PDF) 940, Employer's Annual Federal Unemployment (FUTA) Tax Return (PDF)	Instructions for Form 941 Employers QUARTERLY Federal Tax Return (PDF) Instructions for Form 943 Employers Annual Federal Tax Return for Agricultural Employees (PDF) Instructions for Form 940 Employers Annual Federal Unemployment (FUTA) Tax Return (PDF)
Excise Taxes	Refer to the Excise Tax Web page

Chart 2 (Individual Partners in a Partnership)

If you are a partner (individual) in a partnership then you may be liable for...	Use Form...	Separate Instructions...
Income Tax	1040, U.S. Individual Income Tax Return (PDF) and Schedule E (Form 1040), Supplemental Income and Loss (PDF)	Instructions for 1040 U.S. Individual Income Tax Return (PDF) Instructions for Schedule E (Form 1040) (PDF)
Self-employment tax	1040, U.S. Individual Income Tax Return (PDF) and Schedule SE (Form 1040), Self-Employment Tax (PDF)	Instructions for Schedule SE (Form 1040) (PDF)
Estimated tax	1040-ES, Estimated Tax for Individuals (PDF)