When business assets are sold to another individual or company, each party must fill out Form 8594 to report how those items will be treated for tax purposes. The purchaser and the seller will both attach Form 8594 to their tax returns indicating which of 7 classes each asset is categorized in. The IRS is not specific on how each item is classified, as long as both the buyer and seller use the same method. This form should be the same as what is outlined in the sales agreement between the buyer and the seller. If there are inconsistencies, penalties and fees may be assessed if the IRS has to make adjustments.