The U.S. IRS has released an international practice unit, LIFO Pooling Requirements. The general overview of the practice unit and the key factors are provided as follows:
Any taxpayer permitted or required to take inventories pursuant to the provisions of IRC 471, and pursuant to the provisions of Treas. Reg. 1.471–1 to 1.471–9, inclusive, may elect to compute opening and closing inventories for those goods using the last-in first-out (LIFO) method provided by IRC 472. Under the LIFO inven…