As part of LB&I's knowledge management efforts, Practice Units are developed through internal collaboration and serve as both job aids and training materials on tax issues. For example, Practice Units provide IRS staff with explanations of general tax concepts as well as information about a specific type of transaction. Practice Units will continue to evolve as the compliance environment changes and new insights and experiences are contributed. Please visit this site periodically for new and updated Practice Units which are shared below. To provide feedback on a specific Practice Unit, please send an email to LBI Practice Unit Public Feedback and specify the Practice Unit's name and Document Control Number (DCN), which are both listed on the Practice Unit's cover page. Please do not reference a specific individual or entity in your email as comments may be subject to future release. The IRS does not commit to respond to suggestions or comments. Practice Units are available in Adobe PDF and must be viewed with the Acrobat Reader. Note: Practice Units are not official pronouncements of law or directives and cannot be used, cited or relied upon as such. Practice Units provide a general discussion of a concept, process or transaction and are a means for collaborating and sharing knowledge among IRS employees. Practice Units may not contain a comprehensive discussion of all pertinent issues, law or the IRS's interpretation of current law. Practice Units do not limit an IRS examiner's ability to use other approaches when examining issues. Practice Units and any non-precedential material (e.g., a private letter ruling, determination letter, or Chief Counsel advice) that may be referenced in a Practice Unit may not be used or cited as precedent. References to third party service providers and documents, like news or journal articles, are for informational purposes only and do not constitute an endorsement of any vendor, document, or the services or views offered by such third party. Years 2024 2023 2022 2021 2020 To find years 2019 to 2014 see, Practice Units - 2019 to 2014. 2024 Date Title Size 06-07-2024 Lower of Cost or Market (LCM) PDF 379KB 02-21-2024 How to Allocate and Apportion Research and Experimental (R&E) Expenses for Tax Years Beginning Before 1/1/2020 PDF 285KB 2023 Date Title Size 11-30-2023 Taxation of Beneficiary of a Foreign Non-Grantor Trust PDF 360KB 09-29-2023 Foreign Tax Credit – Categorization of Income and Taxes Into Proper Basket PDF 465KB 07-12-2023 Expatriation On or After June 17, 2008 – Mark-to-Market (MTM) Tax Regime PDF 368KB 05-16-2023 Interest Expense Limitation on Related Foreign Party Loans Under IRC 267(a)(3) PDF 719KB 05-16-2023 Dividend Distribution with a Debt Issuance PDF 235KB 05-16-2023 Interest Expense Limitation Under IRC 163(j) for Controlled Foreign Corporations Post-TCJA PDF 406KB 01-17-2023 Identifying and Handling Claims for Changes in Accounting Methods PDF 379KB 01-17-2023 Accounting Method Basic PDF 251KB 2022 Date Title Size 10-18-2022 FinCEN Form 114 –Report of Foreign Bank and Financial Accounts (FBAR) PDF 254KB 08-29-2022 IRC 958 Rules for Determining Stock Ownership PDF 626KB 07-25-2022 Allowance of Deductions and Credits on 1120-F Delinquent Returns PDF 273KB 06-24-2022 IRC 179D Energy Efficient Commercial Buildings Deduction PDF 365KB 04-25-2022 Country-by-Country (CbC) Report in the Transfer Pricing Risk Analysis Process PDF 499KB 03-31-2022 Deferred Compensation Received by Nonresident Alien Individuals PDF 279KB 03-22-2022 Erroneous Claim for Refund or Credit Penalty PDF 241KB 01-04-2022 Section 245A Dividend Received Deduction Overview PDF 310KB 2021 Date Title Size 12-14-2021 IRC 59A Base Erosion Anti-Abuse Tax Overview PDF 762KB 12-14-2021 Interest on Deferred Tax Liability PDF 434KB 12-14-2021 Examining Treaty Exemptions of Income — NRA Students, Trainees, Teachers and Researchers PDF 471KB 12-14-2021 Tax Shelter Promoter Investigations Under IRC 6700 PDF 368KB 12-14-2021 Flow-Through Entities Effects on FTC PDF 549KB 11-05-2021 Overview – Expense Allocation/Apportionment in Calculation of the IRC 904 FTC Limitation PDF 443KB 10-26-2021 Form 1040NR Examination Adjustments in RGS PDF 508KB 10-26-2021 Examining Education Expenses Claimed by Nonresident Alien Individual Employees PDF 310KB 10-01-2021 Examining a Reseller's 263A Computation PDF 480KB 09-16-2021 Section 263A Costs for Self-Constructed Assets PDF 299KB 09-16-2021 Limitation of Exchange Gain or Loss on Payment or Disposition of Debt Instrument PDF 326KB 09-01-2021 FTC (Business) General Principles PDF 241KB 08-20-2021 Transfers of Property to Partnerships with a Related Foreign Partner PDF 392KB 08-20-2021 Accuracy-Related Penalty on Understatements With Respect to Reportable Transactions PDF 301KB 08-04-2021 Penalty for Failure to Include Reportable Transaction Information with Return PDF 216KB 07-28-2021 Overview of IRC 987 and Branch Operations in a Foreign Currency PDF 356KB 07-08-2021 IRC Section 250 Deduction: Foreign-Derived Intangible Income (FDII) PDF 288KB 07-07-2021 Revised ASC 730 Directive - Computing Qualified Research Expense PDF 754KB 06-30-2021 Allocation Methods of Personal Use of Aircraft PDF 505KB 06-30-2021 Foreign Tax Redeterminations PDF 192KB 06-17-2021 Concepts of Global Intangible Low-Taxed Income PDF 429KB 06-10-2021 Partner's Outside Basis PDF 442KB 05-20-2021 Allocation and Apportionment of Deductions PDF 252KB 04-05-2021 FTC Carryback and Carryover PDF 263KB 04-02-2021 Liquidating Distributions of a Partner's Interest in a Partnership PDF 315KB 04-02-2021 Reasonable Cause and Good Faith PDF 213KB 03-29-2021 Receipt of Dividends or Interest from a Related CFC PDF 283KB 03-23-2021 IRC 965 Transition Tax Overview PDF 261KB 03-12-2021 Sale of a Partnership Interest PDF 526KB 02-25-2021 Producer's 263A Computation PDF 342KB 02-12-2021 Interest Capitalization for Self-Constructed Assets PDF 842KB 01-28-2021 LIFO Records PDF 230KB 01-04-2021 Qualified Dividends and Capital Gains Rate Differential Adjustments PDF 481KB 2020 Date Title Size 12-18-2020 Determining Liability Allocations PDF 176KB 12-18-2020 Recourse vs. Nonrecourse Liabilities PDF 236KB 12-04-2020 Modified Simplified Production Method PDF 378KB 12-04-2020 Alternative Method for Determining Section 471 Costs for UNICAP Purposes PDF 264KB 09-30-2020 Cost Sharing Arrangements With Stock Based Compensation PDF 228KB 09-17-2020 Overall Foreign and Domestic Losses PDF 329KB 09-15-2020 Introduction to Dollar Value LIFO PDF 516KB 09-09-2020 Foreign Earned Income Exclusion - Audit Techniques PDF 218KB 08-25-2020 Foreign Earned Income for Purposes of IRC 911 PDF 103KB 08-19-2020 LIFO Pooling Requirements PDF 125KB 08-19-2020 Taxability of Distributions Not From Accumulated Earnings & Profits PDF 255KB 08-13-2020 Computation and Review of IRC 986(c) Gain or Loss -Pre-TCJA PDF 226KB 07-17-2020 FTC Limitation and Computation PDF 70KB 07-14-2020 Distributions with Accumulated Earnings & Profits PDF 479KB 07-14-2020 General Overview of Distributions and Accumulated Earnings & Profits PDF 321KB 07-14-2020 Property Distribution PDF 395KB 07-14-2020 Adopting LIFO PDF 94KB 07-14-2020 LIFO Conformity for U.S. Corporations with Foreign Subsidiaries Using LIFO PDF 93KB 07-14-2020 LIFO Conformity PDF 60KB 05-26-2020 Taxation on the Disposition of USRPI by Foreign Persons PDF 282KB 05-08-2020 IRC 481(a) Adjustments for IRC 263A Accounting Method Changes PDF 297KB 05-08-2020 Foreign Earned Income Exclusion Adjustment PDF 72KB 05-08-2020 Overview of IRC 986(c) Gain or Loss Prior to Tax Cuts and Jobs Act of 2017 PDF 167KB 05-08-2020 Official Versus Free Market Exchange Rate PDF 88KB 04-28-2020 Installment Method PDF 159KB 04-28-2020 Substantiation Requirements PDF 86KB 04-28-2020 Foreign Currency Translation PDF 166KB 04-10-2020 Overview of Statute of Limitations on the Assessment of Tax PDF 131KB 04-07-2020 Adjustments for Overwithholding on Form 1042 PDF 2637KB 03-10-2020 How to Compute the AMT FTC PDF 108KB 01-28-2020 Overview of the Enhanced Oil Recovery Tax Credit PDF 362KB 01-22-2020 FDAP Payments -Statistical Sampling and Projection Procedures PDF 238KB
