Is Yoc Heating still in business?

The merger of one company into another after the parent of the first company has acquired the second should result in no gain or loss for tax purposes under IRC section 368. As long as the transactions between the three companies could be accomplished through other means and the corporate characteristics of all three remain intact, the move should be treated as a qualified stock purchase for tax purposes. The IRS should issue a revenue ruling to clarify these and other section 368 issues.