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Glossary · People and paperwork

Internal Revenue Service

In short

The U.S. government agency responsible for collecting taxes and enforcing tax laws. As a buyer, you'll interact with the IRS when reviewing the seller's tax returns and managing your own post-acquisition tax obligations.

What it means in a deal

Your lender will require IRS transcripts (Form 4506-T) for the seller's business and personal returns during underwriting to verify reported income. After acquisition, you'll be responsible for ongoing tax compliance. Understand the business's tax filing history and any past issues the seller had with the IRS.

Common questions about Internal Revenue Service

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Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.

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