What is the primary purpose of Form 1065?

Form 1065 serves as the tax return for partnerships to report their financial activities to the IRS. Its primary purpose is to detail the partnership's income, gains, losses, deductions, and credits, which are essential for determining the overall tax liabilities of the partnership and its individual partners. Unlike corporations, partnerships are pass-through entities; they do not pay income tax at the entity level. Instead, the income or loss is passed through to individual partners, who report this information on their personal tax returns. The form provides a comprehensive overview of the partnership's financial performance, helping ensure transparency and compliance with tax regulations.

The focus of the other options deviates from the specific function of Form 1065, as they pertain to individual taxes, estate taxes, or employment wage summaries, none of which is related to partnership tax reporting.