IRS practice units: Accounting method changes, foreign earned income exclusion, other topics

IRS practice units

The IRS Large Business and International (LB&I) division publicly released four “practice units”—part of a series of IRS examiner “job aides” and training materials intended to describe for IRS agents leading practices about tax concepts in general and specific types of transactions.


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The topics of the practice units are:

  • IRC 481(a) adjustments for IRC 263A accounting method changes  (referred to as a “concept unit” by the IRS)
  • Foreign earned income exclusion (referred to as a “process unit”)
  • Overview of IRC 986(c) gain or loss prior to Tax Cuts and Jobs Act of 2017 (referred to as a “concept unit”)
  • Official versus free market exchange rate (referred to as a “concept unit”)

Read the practice units on the IRS practice unit webpage (posting date of May 8, 2020).

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