IRS Revenue Ruling
1999-26

 Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The April 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,
April 30, 1999.


REV. RUL. 99-26

The following Department Store Inventory Price Indexes for April 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, April 30, 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
Apr. Apr. Apr. 1998 to
Groups 1998 1999 Apr. 1999 <1>
------ ---- ---- -------------
1. Piece Goods 547.3 553.1 1.1
2. Domestics and Draperies 642.9 633.8 -1.4
3. Women's and Children's Shoes 663.6 669.4 0.9
4. Men's Shoes 902.5 894.6 -0.9
5. Infants' Wear 628.1 617.2 -1.7
6. Women's Underwear 586.1 576.0 -1.7
7. Women's Hosiery 305.5 321.9 5.4
8. Women's and Girls'Accessories 550.1 568.9 3.4
9. Women's Outerwear and Girls'Wear 431.7 415.5 -3.8
10. Men's Clothing 633.6 629.3 -0.7
11. Men's Furnishings 609.6 629.2 3.2
12. Boys' Clothing and Furnishings 498.8 495.7 -0.6
13. Jewelry 1001.8 984.0 -1.8
14. Notions 793.7 778.7 -1.9
15. Toilet Articles and Drugs 936.7 956.1 2.1
16. Furniture and Bedding 675.9 699.4 3.5
17. Floor Coverings 603.7 602.8 -0.1
18. Housewares 821.4 802.1 -2.3
19. Major Appliances 239.4 232.8 -2.8
20. Radio and Television 73.0 67.5 -7.5
21. Recreation and Education <2> 105.7 99.4 -6.0
22. Home Improvements <2> 134.0 128.1 -4.4
23. Auto Accessories <2> 106.8 106.8 0.0

Groups 1 - 15: Soft Goods 615.3 612.3 -0.5
Groups 16 - 20: Durable Goods 464.9 454.4 -2.3
Groups 21 - 23: Misc. Goods <2> 109.5 104.7 -4.4

Store Total <3> 560.8 553.5 -1.3

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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, 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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