Generally, both the purchaser and seller must file Form 8594 and attach it to their income tax returns (Forms 1040, 1041,. Form 8594 requires detailed allocation of the purchase price among seven asset classes, each with its own tax implications.Learn how to file form 8594 and when to file. According to section 1060 of the Internal Revenue Code, the IRS requires that you fill out and file Form 8594 when you're buying or selling a business. "Agreement" is defined in the preamble to this Agreement.