Buyer Won't

[S T]

I have a LP that sold its business, and it is clear in the escrow instructions on how to allocate the sales price.

However, the buyer refuses to give the seller the necessary information to complete the form 8594.

Yes, I had advised the seller that this information was to be obtained in the closing escrow instructions, but no one followed through. How do you handle?

Sandy

[Roland Slugg]

... it is clear in the escrow instructions on how to allocate the sales price.

What am I missing here? Use the amounts specified in the escrow instructions.

[taxmandan]

Are you talking about their SSN/TIN, etc?

You may have to write "refused to provide" in the appropriate box. Paper return to mail in, and let the IRS figure it out.

[S T]

I will have to check

If my efile will allow me to efile without the buyers TIN# or SSN#, can I just attach an efile note, that the buyer refused to provide the information. I do have the name and the address, but buyer is not forthcoming on the TIN# or SSN#.

Sandy

[S T]

Unclear

Buyer won't release his TIN# or SSN#, and I do not want my taxpayer to be penalized, they have met every other obligation of the contract.

I need the information of the buyer to complete the required form 8594.

Sandy

[ChEAr$]

I still don't understand

Buyer won't release his TIN# or SSN#, and I do not want my taxpayer to be penalized, they have meet every other obligation of the contract.

I need the information of the buyer to complete the required form 8594.

Sandy

just why the sale price wasn't specified and broken down in the original sale agreement.

but absent that, seller should use best information he has as to values of inventory, fmv of
equipment, and therefore lump the remainder as "goodwill".

and yes, paper file the return.

[S T]

Harlan

As I stated before, we do have it in the purchase agreement for the allocation.

That is not the issue here. The issue is that the Buyer WILL NOT release his TIN# or SSN#.

That information is also required on the form 8594.

Sandy

[Y2KEA]

I filed an 1120S in 2006 with an 8594. I put "refused" in the buyer's TIN box & had no efile problems with Lacerte.

[S T]

Requesting 3rd time

Well we have another fax and email going out to the buyer tonight requesting the TIN# or SSN#, if we don't receive, I do believe the Seller has done their due diligence in requesting. So hopefully that will cover the Seller, and it would be nice if I could efile on that basis.

Thanks

Sandy

[Snaggletooth]

8594

Buyer and seller are each required to file 8594 with agreeable allocations.

If one party or the other is not co-operating I would emphasize that this is an open invitation for the IRS to examine the deal. I don't think the seller wants this.

For one party to file their 8594 without seeing the other, or at least having the mirror-image numbers of the other party disenfranchises the goodwill of the buyer and/or capital gains of the seller.

Failure to furnish the FEIN of both parties forces the IRS to have to chase it down or else come calling. If I were the seller I wouldn't want this to happen. After giving a warning, I would file a paper copy if e-file won't accept it.

[ChEAr$]

I don't know, but

Well we have another fax and email going out to the buyer tonight requesting the TIN# or SSN#, if we don't receive, I do believe the Seller has done their due diligence in requesting. So hopefully that will cover the Seller, and it would be nice if I could efile on that basis.

Thanks

Sandy

maybe you can efile the return even without those numbers. Try it. All they can do is
not accept it, then of course paper file.

I used to think when starting to efile back in 1989 we had to enter every cotton pickin'
figure off the W2 into the software. But we don't.