They got the cart before the horse, the deal shows lack of business savvy. It very easily could have happened while being current in their filings. Tax code is clear on this point. Don't feel the need to defend the obvious lack of foresight on this point. The audit was avoidable, if they had bothered to look at the code. It took me about 15 minutes to figure it out.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.