IRS Revenue Ruling
1997-15

Code Sec. 472

<<FULL TEXT>>

26 CFR 1.472-1: Last-in, first-out inventories.

LIFO; price indexes, department stores. The January 1997 Bureau of
Labor Statistics price indexes are accepted for use by department stores
employing the retail inventory and last-in, first-out inventory methods
for valuing inventories for tax years ended on, or with reference to,
January 31, 1997.


REV. RUL. 97-15

The following Department Store Inventory Price Indexes for January 1997
were issued by the Bureau of Labor Statistics on February 19, 1997. The
indexes are accepted by the Internal Revenue Service, under section
1.472-1(k) of the Income Tax Regulations and Rev. Proc. 86-46, 1986-2 C.B.
739, for appropriate application to inventories of department stores
employing the retail inventory and last-in, first-out inventory methods
for tax years ended on, or with reference to, January 31, 1997.

The Department Store Inventory Price Indexes are prepared on a national
basis and include (a) 23 major groups of departments, (b) three special
combinations of the major groups -- soft goods, durable goods, and
miscellaneous goods, and (c) a store total, which covers all departments,
including some not listed separately, except for the following: candy,
foods, liquor, tobacco, and contract departments.


BUREAU OF LABOR STATISTICS, DEPARTMENT
STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS

(January 1941 = 100,
unless otherwise noted)

Percent
Change from
Jan. Jan. Jan. 1996 to
Groups 1996 1997 Jan. 1997 <1>
------ ---- ---- -------------
1. Piece Goods 519.0 536.5 3.4
2. Domestics and Draperies 648.4 648.0 -0.1
3. Women's and Children's Shoes 628.8 636.8 1.3
4. Men's Shoes 887.6 895.6 0.9
5. Infants' Wear 641.1 622.7 -2.9
6. Women's Underwear 519.1 522.0 0.6
7. Women's Hosiery 289.4 291.3 0.7
8. Women's and Girls' Accessories 554.2 539.6 -2.6
9. Women's Outerwear and Girls' Wear 400.3 404.3 1.0
10. Men's Clothing 602.7 614.3 1.9
11. Men's Furnishings 560.6 580.0 3.5
12. Boys' Clothing and Furnishings 478.5 478.5 0.0
13. Jewelry 994.5 993.2 -0.1
14. Notions 802.7 773.4 -3.7
15. Toilet Articles and Drugs 875.4 906.5 3.6
16. Furniture and Bedding 668.9 658.4 -1.6
17. Floor Coverings 563.6 579.1 2.8
18. Housewares 800.5 818.0 2.2
19. Major Appliances 247.6 246.8 -0.3
20. Radio and Television 78.9 78.4 -0.6
21. Recreation and Education <2> 112.6 111.7 -0.8
22. Home Improvements <2> 123.1 132.9 8.0
23. Auto Accessories <2> 107.7 107.6 -0.1

Groups 1-15: Soft Goods 585.2 592.0 1.2
Groups 16-20: Durable Goods 467.0 469.9 0.6
Groups 21-23: Misc. Goods <2> 113.2 113.6 0.4

Store Total <3> 544.9 550.0 0.9

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1/ Absence of a minus sign before percentage change in this column
signifies price increase.
2/ Indexes on a January 1986=100 base.
3/ The store total index covers all departments, including some not
listed separately, except for the following: candy, foods, liquor,
tobacco, and contract departments.


DRAFTING INFORMATION

The principal author of this revenue ruling is Stan Michaels of the
Office of Assistant Chief Counsel (Income Tax and Accounting). For further
information regarding this revenue ruling, contact Mr. Michaels on (202)
622-4970 (not a toll-free call).

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