Question \#4. (4 points) Your client, MNO Corporation, is a for-profit corporation and is very...
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Question \#4. (4 points) Your client, MNO Corporation, is a for-profit corporation and is very profitable. MNO is owned 100% by Greatest Charity in the World, Inc., a tax-exempt, Section 501(c)(3) charitable organization. At the end of each year, MNO pays all its profits to Greatest Charity in the World in the form of a dividend. Recently, MNO Corporation received a notice of deficiency from the IRS claiming that MNO grossly underpaid its tax llability for the year 2022. The CFO of MNO is confused because she figures that since MNO pays all profits to a tax-exempt organization (Greatest Charity in the World), that MNO has no tax liability. Does MNO owe income taxes to the IRS even though it pays all its profits to the Greatest Charity in the World? Why or why not
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