{"ok":true,"canonical_url":"https://dealroom.so/glossary/outstanding-federal-taxes","api_url":"https://dealroom.so/api/public/glossary/outstanding-federal-taxes","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":"outstanding-federal-taxes","term":"Outstanding federal taxes","group":"Reading the business","definition":"These are unpaid tax liabilities owed to the federal government, such as income or payroll taxes. Unresolved tax issues can create significant liabilities for a buyer.","what_it_means":"During due diligence, always request IRS transcripts (4506-T) to verify tax filings and uncover any outstanding federal tax obligations. Unpaid taxes, especially payroll taxes, must be resolved before or at closing to avoid inheriting the seller's liabilities.","url":"https://dealroom.so/glossary/outstanding-federal-taxes","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":"federal-obligation","term":"Federal obligation","url":"https://dealroom.so/glossary/federal-obligation"},{"slug":"irs-transcripts","term":"IRS transcripts (4506-T)","url":"https://dealroom.so/glossary/irs-transcripts"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"}],"related_questions":[{"question":"What happens if a business has outstanding federal taxes when applying for an SBA loan?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-a-business-has-outstanding-federal-taxes-when-applying-for-an-sba-loan"},{"question":"What happens if my business has outstanding federal taxes, like IRS debt, when applying for an SBA loan?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-my-business-has-outstanding-federal-taxes-like-irs-debt-when-applying-for-"},{"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":"What if a borrower has outstanding judgments or liens from non-federal entities?","url":"https://dealroom.so/for-lenders/questions/what-if-a-borrower-has-outstanding-judgments-or-liens-from-non-federal-entities"},{"question":"What happens if a borrower has outstanding judgments or liens from non-federal entities?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-borrower-has-outstanding-judgments-or-liens-from-non-federal-entities"},{"question":"What is the impact if a 7(a) loan borrower becomes delinquent on their federal taxes after loan closing?","url":"https://dealroom.so/for-lenders/questions/what-is-the-impact-if-a-7-a-loan-borrower-becomes-delinquent-on-their-federal-taxes-after-"}]},"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 — Outstanding federal taxes","url":"https://dealroom.so/glossary/outstanding-federal-taxes","source_type":"DealRoom Data"}}