Practice units

 

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 Practice units and any non-precedential material (e.g., a private letter ruling, determination letter, or Chief Counsel advice) that may be referenced in a practice unit may not be used or cited as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

To find years 2019 to 2014 see, Practice units: 2019 to 2014.

2025

DateTitleSize
5-01-2025Foreign Tax Redeterminations PDF194KB
5-01-2025Failure to File the Form 3520/3520-A - Penalties PDF277KB
4-16-2025IRC 481(a) Adjustments for IRC 263A Accounting Method Changes PDF296KB
4-16-2025Qualified Dividends and Capital Gains Rate Differential Adjustments PDF522KB
4-16-2025Section 861 -Home Office and Stewardship Expenses PDF381KB
4-16-2025Sourcing of Multi-Year Compensation Arrangements Including Stock Options for FTC Limitation PDF257KB
4-16-2025U.S. Persons Residing Abroad Claiming Additional Child Tax Credit PDF260KB
4-8-2025Allowance of Deductions and Credits on 1120-F Delinquent Returns PDF258KB
4-8-2025Allocation and Apportionment of Deductions for Nonresident Alien Individuals PDF209KB
4-8-2025Branch-Level Interest Tax Concepts PDF882KB
4-3-2025Foreign Currency Translation PDF237KB
4-3-2025Reduced Foreign Taxes Under Treaty Provisions PDF366KB
4-1-2025Branch Profits Tax Concepts PDF187KB
4-1-2025General Deductions of a Foreign Corporation Engaged in U.S. Trade or Business (Non-Treaty) PDF262KB
4-1-2025Gross Effectively Connected Income (ECI) of a Foreign Corporation (Non-Treaty) PDF236KB
4-1-2025Hedge Fund Basics PDF304KB
4-1-2025IRC 59A Base Erosion Anti-Abuse Tax Overview PDF633KB
3-24-2025Sale of a Partnership Interest PDF514KB
3-24-2025Self-Employment Tax and Partners PDF261KB
3-24-2025French Foreign Tax Credits PDF242KB
3-24-2025FTC General Principles PDF253KB
3-24-2025FTC Limitation and Computation PDF200KB
3-24-2025Foreign Earned Income Exclusion Adjustment PDF226KB
3-24-2025Sourcing of Salary and Compensation PDF441KB
3-24-2025Determining Liability Allocations PDF194KB
2-4-2025Recourse vs. Nonrecourse Liabilities PDF236KB
2-4-2025Partner’s Outside Basis PDF530KB
2-4-2025Identifying a Taxpayer Electing a Partial Disposition of a Building PDF233KB
2-4-2025Examining a Taxpayer Electing a Partial Disposition of a Building PDF314KB
1-28-2025FTC Categorization of Income and Taxes PDF370KB
1-28-2025FTC Carryback and Carryover PDF220KB
1-28-2025FTC Sourcing of Income PDF354KB

2024

DateTitleSize
11-22-2024LIFO Pooling-Requirements PDF217KB
10-30-2024IRC Section 250 Deduction: Foreign - Derived Intangible Income (FDII) PDF419KB
6-7-2024Lower of Cost or Market (LCM) PDF379KB

2023

DateTitleSize
11-30-2023Taxation of Beneficiary of a Foreign Non-Grantor Trust PDF360KB
7-12-2023Expatriation On or After June 17, 2008 – Mark-to-Market (MTM) Tax Regime PDF368KB
5-16-2023Interest Expense Limitation on Related Foreign Party Loans Under IRC 267(a)(3) PDF719KB
5-16-2023Dividend Distribution with a Debt Issuance PDF235KB
5-16-2023Interest Expense Limitation Under IRC 163(j) for Controlled Foreign Corporations Post-TCJA PDF406KB
1-17-2023Identifying and Handling Claims for Changes in Accounting Methods PDF379KB
1-17-2023Accounting Method Basic PDF251KB

2022

DateTitleSize
10-18-2022FinCEN Form 114 –Report of Foreign Bank and Financial Accounts (FBAR) PDF254KB
4-25-2022Country-by-Country (CbC) Report in the Transfer Pricing Risk Analysis Process PDF499KB
3-31-2022Deferred Compensation Received by Nonresident Alien Individuals PDF279KB
3-22-2022Erroneous Claim for Refund or Credit Penalty PDF241KB

2021

DateTitleSize
12-14-2021Examining Treaty Exemptions of Income — NRA Students, Trainees, Teachers and Researchers PDF471KB
12-14-2021Tax Shelter Promoter Investigations Under IRC 6700 PDF368KB
9-16-2021Section 263A Costs for Self-Constructed Assets PDF299KB
9-16-2021Limitation of Exchange Gain or Loss on Payment or Disposition of Debt Instrument PDF326KB
8-20-2021Accuracy-Related Penalty on Understatements With Respect to Reportable Transactions PDF301KB
8-4-2021Penalty for Failure to Include Reportable Transaction Information with Return PDF216KB
7-28-2021Overview of IRC 987 and Branch Operations in a Foreign Currency PDF356KB
7-7-2021Revised ASC 730 Directive - Computing Qualified Research Expense PDF754KB
6-30-2021Allocation Methods of Personal Use of Aircraft PDF505KB
4-2-2021Reasonable Cause and Good Faith PDF213KB
3-23-2021IRC 965 Transition Tax Overview PDF261KB
2-12-2021Interest Capitalization for Self-Constructed Assets PDF842KB
1-28-2021LIFO Records PDF230KB

2020

DateTitleSize
12-4-2020Modified Simplified Production Method PDF378KB
12-4-2020Alternative Method for Determining Section 471 Costs for UNICAP Purposes PDF264KB
9-30-2020Cost Sharing Arrangements With Stock Based Compensation PDF228KB
9-17-2020Overall Foreign and Domestic Losses PDF329KB
9-15-2020Introduction to Dollar Value LIFO PDF516KB
9-9-2020Foreign Earned Income Exclusion - Audit Techniques PDF218KB
8-25-2020Foreign Earned Income for Purposes of IRC 911 PDF103KB
8-13-2020Computation and Review of IRC 986(c) Gain or Loss -Pre-TCJA PDF226KB
7-14-2020Adopting LIFO PDF94KB
7-14-2020LIFO Conformity for U.S. Corporations with Foreign Subsidiaries Using LIFO PDF93KB
7-14-2020LIFO Conformity PDF60KB
5-26-2020Taxation on the Disposition of USRPI by Foreign Persons PDF282KB
5-8-2020Overview of IRC 986(c) Gain or Loss Prior to Tax Cuts and Jobs Act of 2017 PDF167KB
5-8-2020Official Versus Free Market Exchange Rate PDF88KB
4-28-2020Substantiation Requirements PDF86KB
4-10-2020Overview of Statute of Limitations on the Assessment of Tax PDF131KB
Page Last Reviewed or Updated: 31-Jul-2026