{"ok":true,"canonical_url":"https://dealroom.so/glossary/federal-tax-liabilities","api_url":"https://dealroom.so/api/public/glossary/federal-tax-liabilities","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"federal-tax-liabilities","term":"Federal tax liabilities","group":"Reading the business","definition":"Amounts owed by the business or seller to the federal government for taxes like income, payroll, or excise taxes. Unpaid federal tax liabilities can become a lien on business assets or even transfer to you as a buyer.","what_it_means":"During due diligence, obtain IRS transcripts (Form 4506-T) for the business and seller to verify reported income and identify any outstanding federal tax liabilities or liens. Ensure all federal tax liens are paid and released at closing, as the SBA lender will not allow them to remain on your collateral.","url":"https://dealroom.so/glossary/federal-tax-liabilities","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"irs-transcripts","term":"IRS transcripts (4506-T)","url":"https://dealroom.so/glossary/irs-transcripts"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"}],"related_questions":[{"question":"If the seller has outstanding federal tax liabilities that will not be paid at closing, will this prevent loan approval?","url":"https://dealroom.so/sba-7a/questions/if-the-seller-has-outstanding-federal-tax-liabilities-that-will-not-be-paid-at-closing-wil"},{"question":"What happens if the business being acquired has significant outstanding tax liabilities at closing?","url":"https://dealroom.so/for-lenders/questions/what-happens-if-the-business-being-acquired-has-significant-outstanding-tax-liabilities-at"},{"question":"What if a business applicant has outstanding federal tax liens or delinquencies?","url":"https://dealroom.so/for-lenders/questions/what-if-a-business-applicant-has-outstanding-federal-tax-liens-or-delinquencies"},{"question":"Can unreported tax liabilities discovered during due diligence from the seller's business kill my acquisition loan?","url":"https://dealroom.so/sba-7a/questions/can-unreported-tax-liabilities-discovered-during-due-diligence-from-the-seller-s-business-"},{"question":"Can a past federal tax lien, now paid in full, impact my eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-past-federal-tax-lien-now-paid-in-full-impact-my-eligibility-for-an-sba-7-a-loan"},{"question":"What impact does a principal's recent federal tax lien have on 7(a) loan eligibility, even if paid?","url":"https://dealroom.so/for-lenders/questions/what-impact-does-a-principal-s-recent-federal-tax-lien-have-on-7-a-loan-eligibility-even-i"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Federal tax liabilities","url":"https://dealroom.so/glossary/federal-tax-liabilities","source_type":"DealRoom Data"}}