Lisa and the Law

Did you sell your business this year? – Common mistake made in Buy/Sell deals

When you sell your ownership interest in your business and it has an Employer Identification Number (EIN), changing the individual primarily responsible for the EIN often fails to occur. Be sure that a Form 8822-B (Change of Address or Responsible Party) was filed as part of your transaction and that a confirmation letter from the IRS was received. In sales of only the assets of a business, both the Buyer and Seller must file a IRS Form 8594 stating the value of the assets sold (including goodwill). If you purchased or sold the assets of a business this year, be sure you file the appropriate forms with the IRS.