From testing, it seems like trying to convert both IDNs and regular domain names 'just works' - eg, if the input doesn't need to be changed punycode will just return the input.
punycode.toASCII('lancôme.com');
returns:
'xn--lancme-lxa.com'
And
punycode.toASCII('apple.com');
returns:
'apple.com'
This looks great, but is it specified anywhere? Can I safely convert everything to punycode?