Glossary · People and paperwork
Tax filings
In short
These are the financial reports a business submits to the government, like federal and state income tax returns. As a buyer, you need to review past filings to verify the business's reported income and expenses.
What it means in a deal
Lenders require several years of business tax returns and personal tax returns from the seller to underwrite the loan. You'll use these, alongside other financial statements, during due diligence to confirm the accuracy of the seller's profit claims. Always compare tax filings with internal P&L statements.
Related terms
Common questions about Tax filings
- What if the business assets are located in multiple states, requiring multiple UCC filings?
- What if the business I'm acquiring has pending tax audits or unresolved tax issues?
- Do unfiled tax returns or overdue taxes prevent SBA approval?
- Are business life insurance premiums generally tax deductible for the company?
- What if a business applicant has outstanding federal tax liens or delinquencies?
- What are the tax implications of key-person life insurance premiums and benefits?
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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