There is not a one size fits all solution to this, unfortunately. Yes, there can be substantial tax benefits, but not all sellers think this way or that far ahead. For example, they could be concerned about your ability to pay the note/operate the company, so tax treatment is not top of mind.

In order to have the best luck with this, try to understand where your seller is coming from and what is important to them as well as their concerns and play to those. The best part about seller notes is that there is endless flexibility. I use them all the time.

Best,
Josh

The best advice I can provide is to build trust by being honest, being yourself, and genuinely trying to understand the sellers perspective and circumstances. If the deal is competitive and there is a non seller note option, it's nearly (if not) impossible. In some of the instances I've seen it work best, the deal changed due to diligence or performance and there was enough trust to get it done. The argument being, "value is the same, but we have to shift some of the proceeds to a note due to..." any number of reasons. If they trust you, they are already more willing to listen.