Updated October 18, 2026. Quick answer: The Tax and Payment block on page 1 of Form 1065 holds amounts the partnership itself owes, such as look-back interest on lines 24 and 25, the BBA AAR imputed underpayment on line 26, and other taxes on line 27. Line 28 totals lines 24 through 27, line 29 and line 30 are credits and payments, and line 31 is the amount owed. Most partnerships leave these lines blank.
Lines 24 and 25: look-back interest
Line 24 is captioned “Interest due under the look-back method” for completed long-term contracts, and line 25 uses the same opening for property depreciated under the income forecast method. For line 24 the instructions say “For partnerships that aren’t closely held, attach Form 8697.” For line 25 they say “For partnerships that aren’t closely held, attach Form 8866.” On each line the instructions explain how to pay by check: “If paying by check, make it payable to “United States Treasury.”” The check should carry the partnership’s EIN, and the instructions give the notation for the form being paid.
Line 26: BBA AAR imputed underpayment
The caption is “BBA AAR imputed underpayment (see instructions)”. The instructions say “Use this line if the partnership is filing an AAR electronically and chooses to pay the IU.” They add “For instructions on how to figure the IU, see the Instructions for Form 8082.” On the amount itself: “Included on line 26 are any payments for the IU, estimated interest and estimated penalties.” For an electronic payment, “choose the payment description “BBA AAR Imputed Underpayment” from the list of payment types.”
Line 27: other taxes
The caption is “Other taxes (see instructions)”. The instructions say “In a few instances, payments other than those listed above may have to be made with Form 1065.” What to do: “Enter the amount on this line and attach a statement identifying the purpose of the payment.” The instructions add that “Payments can be made by check or electronically.”
Line 28: total balance due
Line 28 is arithmetic. The form reads “Total balance due. Add lines 24 through 27”. The instructions have no separate paragraph for line 28, so the printed caption is all the form says about it.
Lines 29 and 30: elective payment amount and payments
Line 29 is captioned “Elective payment election amount from Form 3800”. The instructions say “Report the gross elective payment election amount from column (h) of Form 3800, Part III, line 6.”
Line 30 is captioned “Payment (see instructions)”. The instructions say “Enter any prepayments related to lines 24 through 27 above.”
Line 31: amount owed
The form reads “Amount owed. If the sum of line 29 and line 30 is smaller than line 28, enter amount owed”. The instructions open with “The IRS recommends paying electronically whenever possible.” They continue: “Options to pay electronically include using your bank account at IRS.gov/DirectPay, your debit or credit card, your digital wallet, or your IRS business account at IRS.gov/BusinessAccount.” For other methods the instructions say “You may be able to pay your balance due with cash at a participating retail store.”
Where the number comes from
Each amount on lines 24 to 27 comes from the form or computation the instructions name: Form 8697 or Form 8866 for the look-back interest, the Form 8082 instructions for the imputed underpayment, and the attached statement for other taxes. Line 29 comes from Form 3800, and line 30 comes from the partnership’s own record of prepayments against lines 24 to 27. The deductions and ordinary income above these lines are on the lines 19 to 23 page.
Where it goes next
The result of the arithmetic is line 31 when the sum of lines 29 and 30 is smaller than line 28. The payment is made as the instructions describe. Filing timing for the whole return is at the Form 1065 and Form 1120-S due date page, and an extension request is covered at Form 7004. The page-1 income and deduction lines feed Schedule K, starting on the Schedule K lines 1 to 4 page. This page is part of the Form 1065 line-by-line walk-through.
Edition and line numbers
This page reads the 2025 Form 1065, U.S. Return of Partnership Income, and its 2025 instructions, the current files irs.gov served on 2026-10-18. They are the files for the tax year 2025 return, filed in 2026. The form’s title line reads “U.S. Return of Partnership Income” and the period line reads “For calendar year 2025, or tax year beginning”. Check the tax year printed on the form you are filling in and use the line numbers on that year’s form, because a different year’s form can number or word its lines differently.
Common mistakes
- Leaving off the statement for line 27. The instructions say “attach a statement identifying the purpose of the payment.”
- Mailing a check without the payee name the instructions give. They say “make it payable to “United States Treasury.””
- Treating line 30 as any payment. The instructions say “Enter any prepayments related to lines 24 through 27 above.”
Related: Form 1065, Form 1065 and Form 1120-S due date, Form 7004, and Form 1120-S.
Sources
- Instructions for Form 1065, U.S. Return of Partnership Income (2025): https://www.irs.gov/pub/irs-pdf/i1065.pdf
- Form 1065, U.S. Return of Partnership Income (2025): https://www.irs.gov/pub/irs-pdf/f1065.pdf
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.