{"ok":true,"canonical_url":"https://dealroom.so/glossary/tax-obligation","api_url":"https://dealroom.so/api/public/glossary/tax-obligation","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":"tax-obligation","term":"Tax obligation","group":"Reading the business","definition":"The amount of money a business or individual owes in taxes. Unpaid tax obligations can create serious liens and liabilities for a buyer.","what_it_means":"During due diligence, verify all federal, state, and local tax obligations are current. Unpaid taxes can result in significant liens against business assets or even personal assets. The SBA requires all federal tax obligations to be current for loan approval. Request IRS transcripts (4506-T) to confirm.","url":"https://dealroom.so/glossary/tax-obligation","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"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"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"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"What happens to my personal guaranty obligation if I later sell the business?","url":"https://dealroom.so/sba-7a/questions/what-happens-to-my-personal-guaranty-obligation-if-i-later-sell-the-business"},{"question":"If I sell the business, does the new owner inherit the prepayment penalty obligation for the SBA loan?","url":"https://dealroom.so/sba-7a/questions/if-i-sell-the-business-does-the-new-owner-inherit-the-prepayment-penalty-obligation-for-th"},{"question":"What if the business I'm acquiring has pending tax audits or unresolved tax issues?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-has-pending-tax-audits-or-unresolved-tax-issues"},{"question":"Do unfiled tax returns or overdue taxes prevent SBA approval?","url":"https://dealroom.so/sba-7a/questions/do-unfiled-tax-returns-or-overdue-taxes-prevent-sba-approval"},{"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 tax returns of the business be used to support a partner buyout?","url":"https://dealroom.so/sba-7a/questions/can-tax-returns-of-the-business-be-used-to-support-a-partner-buyout"}]},"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 — Tax obligation","url":"https://dealroom.so/glossary/tax-obligation","source_type":"DealRoom Data"}}