Yahoo! (Nasdaq: YHOO) is on watch following U.S. Internal Revenue Service commentary Monday, which said that the agency was concerned about spin-offs in which a new company had a minimal operating business combined with a substantially larger investment vehicle.

The Financial Times noted that, while the IRS didn't mention Yahoo! specifically, the commentary hints at a deal similar to the one that has Yahoo! looking to spin its $24 billion Alibaba (NYSE: BABA) stake.

Yahoo! previously announced its intention to spin the Alibaba assets into a new entity named Aabaco along with a smaller business formed from Yahoo Small Business.

The Treasury Department and IRS statement is embedded below: