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Energy Future Warned Not to Trip Over Taxes in Oncor Sale

By: Peg Brickley |

U.S. tax authorities this week reminded everyone involved in Energy Future Holdings Corp.’s bankruptcy case that when it comes to deciding the shape of a pending major deal, the Internal Revenue Service is making the rules.

In a three-paragraph filing on the proposed sale of Energy Future’s stake in Oncor, Acting Assistant Attorney General Tamara Ashford said the U.S. will try to block “any bid that would generate a large unfunded income tax liability.”