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TXU Spared Tax Liability on $23 Billion by IRS Ruling

Energy Future Holdings Corp., the Texas power company taken private six years ago in the largest leveraged buyout, won’t have to pay a potential tax liability on $23 billion when transferring ownership of some of its units, according to a decision by the U.S. Internal Revenue Service.

With the April 1 decision from the IRS and earlier approval from nuclear regulators, Energy Future can dispose of its shares in Energy Future Competitive Holdings Co. without triggering the tax liability, the Dallas-based company said in a filing yesterday.