Meantime, Hostess is waiting for final approval for its liquidation, which was approved on an interim basis by bankruptcy judge Robert Drain last week.
The lack of the inside-basis might have minimal effect on federal tax due, since the capital loss on liquidation of the partnership would offset the flow-through gain.
If the losses and liquidation pick up steam, and the 20-day moving average is broken on a closing basis, it would open the door for addition losses throughout the week.