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US: IRS “practice unit” sets forth examination guidance on the inclusion of stock based compensation in cost sharing arrangements

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United States

Executive summary

As part of the Internal Revenue Service (IRS) Large Business and International Division’s (LB&I’s) knowledge management efforts, on 30 September 2020, the IRS released a new practice unit titled “Cost Sharing Arrangements with Stock Based Compensation” (DCN INT-T-226). The practice unit focuses on the inclusion of stock-based compensation (SBC) as an intangible development cos…

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