Which of the following actions cannot be used to eliminate a possible personal holding company tax liability involving a corporation owned by a mother and a father?

A. Make a deficiency distribution within 90 days of the date on which the IRS determines that a personal holding company liability is owed.
B. Sell additional stock to other family members.
C. Liquidate the corporation.
D. Make a cash distribution within 2 1/2 months of the end of the tax year.


Answer: B

Business

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