IRS Revenue Ruling
1999-19

 Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The February 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,
February 28, 1999.


REV. RUL. 99-19

The following Department Store Inventory Price Indexes for February
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, February 28, 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
Feb. Feb. Feb. 1998 to
Groups 1998 1999 Feb. 1999 <1>
------ ---- ---- -------------
1. Piece Goods 535.8 496.2 -7.4
2. Domestics and Draperies 639.3 643.1 0.6
3. Women's and Children's Shoes 656.9 632.3 -3.7
4. Men's Shoes 886.5 889.8 0.4
5. Infants'Wear 612.6 619.6 1.1
6. Women's Underwear 565.2 565.8 0.1
7. Women's Hosiery 308.1 320.0 3.9
8. Women's and Girls' Accessories 548.2 549.6 0.3
9. Women's Outerwear and Girls'Wear 408.9 380.3 -7.0
10. Men's Clothing 624.0 617.4 -1.1
11. Men's Furnishings 590.4 592.2 0.3
12. Boys' Clothing and Furnishings 499.3 478.3 -4.2
13. Jewelry 1001.0 983.3 -1.8
14. Notions 802.0 741.9 -7.5
15. Toilet Articles and Drugs 926.5 951.6 2.7
16. Furniture and Bedding 668.3 679.2 1.6
17. Floor Coverings 583.7 602.7 3.3
18. Housewares 810.3 808.2 -0.3
19. Major Appliances 242.0 233.8 -3.4
20. Radio and Television 73.6 69.0 -6.3
21. Recreation and Education <2> 107.7 100.1 -7.1
22. Home Improvements <2> 134.0 129.8 -3.1
23. Auto Accessories <2> 107.7 107.7 0.0

Groups 1 - 15: Soft Goods 601.1 590.3 -1.8
Groups 16 - 20: Durable Goods 462.4 455.6 -1.5
Groups 21 - 23: Misc. Goods <2> 111.0 105.5 -5.0

Store Total <3> 552.3 540.7 -2.1

----------
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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