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Graeter Corporation acquired all of the stock of Lesser Corporation in 2009, and the enities have filed a state and Federal consolidated income tax...

Graeter Corporation acquired all of the stock of Lesser Corporation in 2009, and the enities have filed a state and Federal consolidated income tax return ever since. In 2012, an audit notice from the state unemployment tax administration makes it clear that Lesser underpaid its 2010 state and Federal payroll taxes by $2 million. Lesser's cash flow at this time is ppor and it has insufficient funds to pay the delinquent amount plus interest and penalties. Can the state revenue agency collect the outstanding payroll tax from graeter under the Federal joint and several liability rule for tax obligation of consolidated return affiliates?

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