Glossary

Form 8594

Form 8594 is the IRS form a buyer and a seller file to report the purchase price allocation in an asset sale.

Form 8594 is the IRS form a buyer and a seller file to report the purchase price allocation in an asset sale. Both sides are expected to report the same allocation. A mismatch is something the IRS can ask about. The form does not set the tax. The allocation does.

Related note

What Form 8594 reports, and who has to file it

Form 8594 is the statement both buyer and seller file to report how a business purchase price was allocated. Who files, the seven asset classes, and the deadline.

Related terms

Purchase Price Allocation

A purchase price allocation assigns a deal's purchase price to the assets and liabilities acquired.

Related practice

Tax Compliance

Tax strategy and compliance for companies moving fast.

Back to the glossary