Yahoo would proceed with the planned spinoff of its stake in Alibaba Group even though the IRS has declined to rule on whether the transaction would be tax free.
The web search company said earlier this month the IRS had denied its request for a private letter ruling on whether the spinoff of its stake in the Chinese e-commerce giant would be considered tax free.
The spin-off will remain subject to certain other conditions including the receipt of a legal opinion on the tax-free treatment of the deal under US federal tax laws, Yahoo said in a regulatory filing.
Yahoo, which expects to complete the deal in the forth quarter ending December 31, has been trying to revive its core online advertizing business by spending more to get users on its websites.