FORM 8594

[BLACK BART]

Just curious but wonder how many preparers file this form when a client sells his/her business.

https://www.irs.gov/pub/irs-access/f8594_accessible.pdf

There's the 230 factor, of course, but there's also a possible "loss of client" factor since buyer/seller views re asset classifications frequently clash (what helps one may injure the other). I've never yet seen (or heard of) an IRS audit, fine, notice, or any communication of any sort at all about it.  Some clients don't care whether it's filed or not and some do.  In any case I don't believe IRS matches them up (excluding GM and such I suppose).

[jklcpa]

I have always included these in the return, and I, or the firm I worked for at the time, have always coordinated with the other party's tax preparer to make sure the forms match and match up to allocations in the the sale documents. 

[BLACK BART]

19 hours ago, jklcpa said:

I have always included these in the return, and I, or the firm I worked for at the time, have always coordinated with the other party's tax preparer to make sure the forms match and match up to allocations in the the sale documents. 

Yes; and so do lots of other preparers.  But also there are many others who pay it no mind and don't file it at all.  Instead of "How many preparers file 8594...", I guess my question should have been "Have you ever seen or heard of any IRS action of any kind taken with regard to this form."  As I said; I have not.

[Evan S. Golar]

I have not - either. However, to protect your client's best interest regardless of whether purchaser or seller - it's always best to do so, because, should the IRS or state tax agency audit the tax return, the first place they'll look to is the 8594 form to see that it was filed, and if the tax treatment of the assets matches the 8594 breakdowns.