Form 8594 is used to report the sale and purchase of a group of assets that constitute a business. Both the purchaser and seller must file Form 8594 with their own individual income tax return. On Form 8594, the total selling price of the business is allocated to asset classes using the residual method.What is IRS Form 8594?
IRS Form 8594 is used to determine the allocation of purchase price when a business is sold. Most businesses are made up of different types of assets, and those assets get different treatment for tax purposes.