Both the seller and purchaser of a group of assets that makes up a trade or business must use Form 8594 to report such a sale. Did you buy or sell a business during the tax year?If so, you may need to file IRS Form 8594 with your federal tax return. You will need to allocate the amount reflected on form 8594 among all the assets. A typical method is to allocate the proceeds based on the original cost. The sale of a business usually is not a sale of one asset. Instead, all the assets of the business are sold. Form 8594 is a tax document required in certain business sales where the buyer acquires assets rather than stock or equity. The purpose of Form 8594 is to determine the treatment of the assets for tax purposes, establish the basis of the acquired assets for the purchaser. For corporations, partnerships, or other entities, enter the Employer Identification Number (EIN).