Ask your CPA whether the form applies
IRS Form 8594 reports certain acquisitions of a group of assets that makes up a trade or business. Applicability depends on the transaction. It is not a form required for every sale of company shares.
The IRS instructions generally require both parties in a covered acquisition to attach the form to their income tax returns. Have your CPA confirm the filing for your structure and tax year.
Agree on allocation before the deadline
The allocation assigns consideration among asset classes. The form and instructions address tangible assets, identifiable intangibles, and goodwill through the applicable categories.
Discuss tax consequences with your CPA before finalizing the agreement. The same total price can produce different seller outcomes depending on the assets and tax treatment.
Preserve the agreed numbers
Keep the purchase agreement, allocation schedule, closing statement, and any later price adjustments together. Your CPA should assess whether a supplemental filing is needed if consideration changes.
Compare offers using the full economics
A headline price does not show the cash you will retain. Prepare a separate estimate for debt payoff, fees, taxes, holdbacks, and any payment that depends on future events.
The broker or valuation partner can discuss commercial terms. Your CPA handles tax modeling, while your attorney documents the agreement. Let each advisor review the parts that affect the others.
Continue your sale preparation
Request a business sale introduction when you are ready to discuss your company.