Yahoo says IRS denies ruling on tax-free Alibaba spinoff

Reuters News
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Posted: Sep 08, 2015 5:18 PM

(Reuters) - Yahoo Inc said the Internal Revenue Service had denied the company's request for a private letter ruling on whether the spinoff of its stake in Alibaba Group Holdings Ltd would be tax free.

Yahoo's shares fell 4.9 percent in extended trading on Tuesday.

The board would continue to carefully consider the company's options, including proceeding with the spinoff on the basis of an opinion of its counsel, Yahoo said. (http://1.usa.gov/1ENjWhq)

(Reporting by Abhirup Roy in Bengaluru; Editing by Sriraj Kalluvila)