Smart Lawyers Position to Transition Form 8594 Explained: Avoiding IRS Headaches When Selling Your Law Firm
IRS Form 8594 might sound like dry paperwork, but it's one of the most important documents in a law firm sale. In this episode, our host Victoria Collier breaks down what the form is, why it matters, and how to avoid post-sale IRS problems. From understanding asset classes to negotiating allocations that minimize taxes, this conversation shows how smart preparation can save both buyers and sellers from stress (and money) down the road.
Key Topics Covered • What IRS Form 8594 is and why both parties must file it • Why the buyer's and seller's forms must match • How asset classes like furniture, accounts receivable, goodwill, and non-competes are taxed differently • Real-world example of a seller facing IRS trouble a year after closing • When the form should be completed and filed • Why professional advisors (brokers, accountants, attorneys) are essential in this process
Form 8594 isn't just another piece of paper—it's a critical tax document that can make or break your post-sale peace of mind. Handle it early, handle it correctly, and avoid costly IRS surprises.
Victoria Collier is a seasoned attorney, entrepreneur, and expert in law firm sales and valuations. With a background in law and accounting, including her prior military service and CPA training, she brings a unique perspective on the financial intricacies of business valuations. Victoria helps transform law firms into more valuable and sellable businesses, guiding attorneys through life after law.
We want to hear from you!
You can leave us a rating and review in Apple Podcasts. Click here and then scroll down the page to the rating and review section.
You can also leave us a rating in Spotify by clicking here.
Connect with Victoria Collier
Private Facebook Group
https://www.facebook.com/groups/1284225722042602
https://www.linkedin.com/company/victoria-collier-coaching/