IRS Can Sometimes Collect Corporate Tax From Former Shareholders

The shareholders of Little Salt were not alone in being caught by double taxation from a corporate asset sale. It seems that people not paying attention or thinking ahead in 1986 were legion. I shake my head and feel sad, but the people who founded MidCoast Investments, Inc. saw opportunity. They offered shareholders of companies a great deal. After the asset sale when all that was left in the company was money in the bank and an obligation to pay corporate income tax, they would buy the company...