Which of the Following Actions Cannot Be Used to Eliminate

question 23

Multiple Choice

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

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Definitions:

Intrastate Issues

Matters or disputes that arise within a single state's boundaries, without impacting other states.

Main Offices

The principal or headquarters of an organization where major administrative and management functions are conducted.

Manipulative And Deceptive Devices

Tactics or schemes designed to deceive or mislead people, often used in reference to fraudulent practices in securities trading.

Securities Exchange Act

A 1934 United States federal law regulating the secondary trading of securities (stocks, bonds, and debentures) in the stock exchange.