IRS Revenue Ruling
1999-4

 Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The November 1998 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,
November 30, 1998.


REV. RUL. 99-4

The following Department Store Inventory Price Indexes for November
1998 were issued by the Bureau of Labor Statistics. 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, November 30, 1998.

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,
food, 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
Nov. Nov. Nov. 1997
Groups 1997 1998 Nov. 1998 <1>
------ ---- ---- -------------
1. Piece Goods 524.6 544.5 3.8
2. Domestics and Draperies 628.2 635.9 1.2
3. Women's and Children's Shoes 661.7 685.8 3.6
4. Men's Shoes 906.9 916.9 1.1
5. Infants' Wear 618.2 638.3 3.3
6. Women's Underwear 552.9 570.4 3.2
7. Women's Hosiery 298.8 308.4 3.2
8. Women's and Girls' Accessories 543.7 546.5 0.5
9. Women's Outerwear and Girls' Wear 428.4 417.0 -2.7
10. Men's Clothing 621.2 619.5 -0.3
11. Men's Furnishings 604.0 608.4 0.7
12. Boys' Clothing and Furnishings 513.1 519.0 1.1
13. Jewelry 978.9 977.1 -0.2
14. Notions 807.7 766.3 -5.1
15. Toilet Articles and Drugs 917.8 945.3 3.0
16. Furniture and Bedding 665.8 686.8 3.2
17. Floor Coverings 580.1 602.2 3.8
18. Housewares 811.7 811.3 0.0
19. Major Appliances 241.0 238.9 -0.9
20. Radio and Television 74.2 70.1 -5.5
21. Recreation and Education <2> 108.3 102.2 -5.6
22. Home Improvements <2> 133.2 129.6 -2.7
23. Auto Accessories <2> 107.9 107.9 0.0

Groups 1-15: Soft Goods 606.5 610.0 0.6
Groups 16-20: Durable Goods 462.6 460.4 -0.5
Groups 21-23: Misc. Goods <2> 111.4 106.9 -4.0

Store Total <3> 555.9 554.9 -0.2

----------
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, food, 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>>
 

TO CONTACT
DON FITCH CPA

Phone Don Fitch CPA Toll Free at (877)CPA-Help or (877)272-4357 or on our Direct Line at (760)674-1722.