The price charged between related parties for the transfer of goods, services, or intangibles, is known as a transfer price. A taxpayer is required to set its transfer price at arm's-length, similar to what would be charged to an unrelated party, to prevent a taxpayer from greatly reducing its global tax by shifting profits from its U.S. entity to an entity located in a jurisdiction with a lower tax rate. Section 482 of the Internal Revenue Code and its associated regulations advises taxpayers on the various methods to calculate its transfer price. These include: the Comparable Uncontrolled Transaction (CUT) method, the Comparable Profits Method (CPM), and the Profit Split Method. Section 482 also grants the Internal Revenue Service (IRS) the authority to allocate a corporation's transfer price if it is not at arm's-length. With millions and sometimes billions of dollars at stake, it is important for the IRS to resolve the incredibly complex issue of transfer pricing without placing an unnecessary burden on U.S. corporations.