The Internal Revenue Service denied Yahoo’s request for a letter ruling that the company’s spinoff of its shares in Alibaba would be tax-free, potentially striking a blow to a key component of the company’s strategy.
But Yahoo, in a Securities and Exchange Commission filing, also said the IRS had not explicitly said the proposed spinoff was taxable, leaving some hope a deal could still be done.
Yahoo shares fell about 4 percent in after-hours trading.
Read the rest of this post on the original site »
This article originally appeared on Recode.net.