Yahoo! Inc. failed to get the advance approval it sought from U.S. officials for a plan to spin off its stake in Alibaba Group Holding Ltd. without incurring taxes. The Web company may proceed with the transaction anyway.
The Internal Revenue Service told Yahoo that the government wouldn’t grant its request for a ruling, and Yahoo then withdrew its petition, the company said in a regulatory filing on Tuesday. The IRS “was not ruling adversely on the request,” Yahoo added. Yahoo shares fell 3.8 percent in extended trading.