Layla Asali commented on the Internal Revenue Service's (IRS's) announcement that the agency will increase its scrutiny of so-called "drop-spin-liquidate" transactions intended to qualify as tax-free section 355 distributions, as well as multistep transactions that are intended to qualify as tax-free reorganizations in which a subsidiary transfers a portion its assets to its corporate shareholder. "I would be interested in the rationale and what principles are guiding this change," said Asali, who serves as Vice Chair of the Miller & Chevalier's Tax Department. "Absent further published guidance like revenue rulings or regulations, it's uncertain what the implications of [the IRS' release] are as to the state of the law."