USA Form 8594 - Multiple Buyers


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Seller of an unincorporated (Sch C) business is selling to 2 buyers. They have not formed a partnership and therefore do not have a common tax id.

When completing form 8594, do we file 2 forms, one for each buyer, with the sales price and all allocations split 50/50 (assuming buyers are 50/50 partners)?
 
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Werner Reisacher

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I assume (and hope) that both parties have entered a sale/purchase agreement in which all conditions of the sales transaction have been outlined and mutually agreed upon in writing. This should take care of the way the transaction needs to be reported.
I would strongly advise that the seller is not making a unilateral decision when he files the transaction with the IRS. The very least the seller should do is to get a written confirmation of the 2 buyers about what their understanding of the transaction is. You do not want to end up with the IRS being in the middle of a potential dispute.
 

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