Yahoo Says IRS Declined to Rule on Alibaba Spinoff
Yahoo says the IRS has declined to issue a private ruling that would have confirmed that the internet company can spin off its stake in China’s Alibaba Group tax-free, although it says the agency hasn’t made a final decision on the deal’s tax status.
Yahoo disclosed the federal tax agency’s position in a regulatory filing Tuesday.
Sunnyvale, California-based Yahoo says it’s moving forward with plans to spin off a separate company that will hold its stake in Alibaba, currently worth more than $23 billion. Yahoo has touted the plan as having no tax consequences for investors.
While the IRS declined to issue a ruling, Yahoo says its attorneys have advised that it doesn’t change the status of the deal or their opinion that it isn’t taxable.
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