IRS Revenue Ruling
1997-22

Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The March 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,
March 31, 1997.


REV. RUL. 97-22

The following Department Store Inventory Price Indexes for March 1997
were issued by the Bureau of Labor Statistics on April 15, 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, March 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
Mar. Mar. Mar. 1996 to
Groups 1996 1997 Mar. 1997 <1>
------ ---- ---- -------------
1. Piece Goods 507.9 539.0 6.1
2. Domestics and Draperies 652.3 644.2 -1.2
3. Women's and Children's Shoes 651.5 646.1 -0.8
4. Men's Shoes 897.6 900.9 0.4
5. Infants' Wear 643.0 630.6 -1.9
6. Women's Underwear 535.9 544.0 1.5
7. Women's Hosiery 284.4 296.7 4.3
8. Women's and Girls' Accessories 556.5 557.3 0.1
9. Women's Outerwear and Girls' Wear 426.9 430.0 0.7
10. Men's Clothing 625.5 617.9 -1.2
11. Men's Furnishings 590.5 587.7 -0.5
12. Boys' Clothing and Furnishings 490.9 479.9 -2.2
13. Jewelry 1052.5 1025.2 -2.6
14. Notions 781.1 801.5 2.6
15. Toilet Articles and Drugs 870.4 910.8 4.6
16. Furniture and Bedding 672.8 667.5 -0.8
17. Floor Coverings 570.6 583.5 2.3
18. Housewares 808.1 813.2 0.6
19. Major Appliances 248.5 244.9 -1.4
20. Radio and Television 79.6 78.5 -1.4
21. Recreation and Education <2> 113.6 111.8 -1.6
22. Home Improvements <2> 123.3 131.9 7.0
23. Auto Accessories <2> 107.1 107.7 0.6

Groups 1 - 15: Soft Goods 606.1 606.4 0.0
Groups 16 - 20: Durable Goods 470.7 469.2 -0.3
Groups 21 - 23: Misc. Goods <2> 113.8 113.6 -0.2

Store Total <3> 559.0 558.8 0.0

----------
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).

<<END RULING>>
 

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