ledbythespirit
New member
I’m selling to a buyer who works for me currently. She’s never bought a business so i’m guiding the process and it’s going well.
The SBA lender (is not a traditional bank) person doing to work has been good and impressed with my clean books, etc
I have an S corp with 2 DBA businesses under the S.
I am doing an Asset Sale of one of the DBA’s only. The challenge is that we do not do Schedule C’s on taxes. but the lender has been good about it bc i’m supplying
3 years of my 1120s. plus consolidated p&l’s and individual p&l’s (so 9 total) for all 3 ‘entities’ for each year. All number match up!
Today they sent me a form 8821 - i see that it allows them to get my taxes from the IRS - okay.
BUT the scope is really an over-reach as it includes:
Income: 2014-2024 (1065, 1120, 1120S, 1041)
Unemployment/ Heavy Use/Civil Penalty: 940/2290/CIV PEN 2014-2024
Withholding/Civil Penalty/Excise Tax : 941/943/943/945/6672/720/8804/CIV PRN all quarters 2014-2024
I need the sale to happen so want to continue in a positive way but this is too much. to sell this $1.5m biz i don’t wanna have to go through due diligence on this much and why the need for 1041’s when they have the 1120’s?
I have never had a penalty or anything so not worried on those things - but can they even ask for more than 3 years?
The SBA lender (is not a traditional bank) person doing to work has been good and impressed with my clean books, etc
I have an S corp with 2 DBA businesses under the S.
I am doing an Asset Sale of one of the DBA’s only. The challenge is that we do not do Schedule C’s on taxes. but the lender has been good about it bc i’m supplying
3 years of my 1120s. plus consolidated p&l’s and individual p&l’s (so 9 total) for all 3 ‘entities’ for each year. All number match up!
Today they sent me a form 8821 - i see that it allows them to get my taxes from the IRS - okay.
BUT the scope is really an over-reach as it includes:
Income: 2014-2024 (1065, 1120, 1120S, 1041)
Unemployment/ Heavy Use/Civil Penalty: 940/2290/CIV PEN 2014-2024
Withholding/Civil Penalty/Excise Tax : 941/943/943/945/6672/720/8804/CIV PRN all quarters 2014-2024
I need the sale to happen so want to continue in a positive way but this is too much. to sell this $1.5m biz i don’t wanna have to go through due diligence on this much and why the need for 1041’s when they have the 1120’s?
I have never had a penalty or anything so not worried on those things - but can they even ask for more than 3 years?