Glossary · Reading the business
In short
Adhering to all tax laws and regulations. As a buyer, you must ensure the business has a clean tax record to avoid inheriting unknown liabilities from the seller.
During due diligence, verify the business has filed all federal, state, and local tax returns and paid all taxes due. Request IRS transcripts (4506-T) and state tax records to confirm the seller's representations. Unresolved tax issues can kill a deal or create major post-acquisition headaches.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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