IRS Revenue Ruling
1999-15

 
 Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The January 1999 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, 1999.


REV. RUL. 99-15

The following Department Store Inventory Price Indexes for January 1999
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, January 31, 1999.

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
Jan. Jan. Jan. 1998 to
Groups 1998 1999 Jan. 1999 <1>
------ ---- ---- -------------
1. Piece Goods 536.7 507.3 -5.5
2. Domestics and Draperies 627.9 643.1 2.4
3. Women's and Children's Shoes 656.3 640.4 -2.4
4. Men's Shoes 890.5 894.0 0.4
5. Infants' Wear 619.0 628.6 1.6
6. Women's Underwear 558.3 560.7 0.4
7. Women's Hosiery 304.6 316.2 3.8
8. Women's and Girls' Accessories 544.1 535.4 -1.6
9. Women's Outerwear and Girls' Wear 395.6 376.9 -4.7
10. Men's Clothing 614.6 603.8 -1.8
11. Men's Furnishings 584.2 585.2 0.2
12. Boys' Clothing and Furnishings 504.4 482.1 4.4
13. Jewelry 981.2 965.3 -1.6
14. Notions 803.3 729.7 -9.2
15. Toilet Articles and Drugs 929.7 946.8 1.8
16. Furniture and Bedding 662.8 678.4 2.4
17. Floor Coverings 583.9 602.4 3.2
18. Housewares 811.8 813.6 0.2
19. Major Appliances 241.8 237.7 -1.7
20. Radio and Television 73.5 69.6 -5.3
21. Recreation and Education <2> 108.3 100.7 -7.0
22. Home Improvements <2> 134.0 130.3 -2.8
23. Auto Accessories <2> 107.8 107.8 0.0

Groups 1 - 15: Soft Goods 593.1 586.4 -1.1
Groups 16 - 20: Durable Goods 461.9 459.0 -0.6
Groups 21 - 23: Misc. Goods <2> 111.5 106.0 -4.9

Store Total <3> 547.5 539.4 -1.5

----------
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 Richard C. Farley, Jr.
of the Office of Assistant Chief Counsel (Income Tax and Accounting). For
further information regarding this revenue ruling, contact Mr. Farley on
(202) 622-4970 (not a toll-free call).

<<END RULING>>
 

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