THE IRS IS EXPECTED TO SHUT DOWN LILO TRANSACTIONS BY FEBRUARY . . . LILOs are a form of lease financing where a foreign company or US municipality leases rail cars or a power plant to a US equity and then subleases it back. The acronym stands for lease-in-lease-out. A senior Treasury official characterized the transactions in December as little more “than the US Treasury paying a foreign person a rebate on the price of some asset.”