IRS Revenue Ruling
1999-34

 Code Sec. 472

<<FULL TEXT>>

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

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


REV. RUL. 99-34

The following Department Store Inventory Price Indexes for June 1, 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,
of with reference to, June 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
June June June 1998 to
Groups 1998 1999 June 1999 <1>
------ ---- ---- -------------
1. Piece Goods 513.9 555.1 8.0
2. Domestics and Draperies 618.6 630.1 1.9
3. Women's and Children's Shoes 659.3 645.1 -2.2
4. Men's Shoes 906.7 876.9 -3.3
5. Infants' Wear 623.1 610.1 -2.1
6. Women's Underwear 567.7 561.4 -1.1
7. Women's, Hosiery 308.3 322.8 4.7
8. Women's and Girls' Accessories 536.2 549.3 2.4
9. Women's Outerwear and Girls' Wear 410.0 392.0 -4.4
10. Men's Clothing 616.6 624.1 1.2
11. Men's Furnishings 599.1 630.4 5.2
12. Boys' Clothing and Furnishings 494.6 488.9 -1.2
13. Jewelry 970.3 961.2 -0.9
14. Notions 776.0 747.4 -3.7
15. Toilet Articles and Drugs 948.5 968.8 2.1
16. Furniture and Bedding 689.3 682.9 -0.9
17. Floor Coverings 604.0 602.7 -0.2
18. Housewares 818.6 801.4 -2.1
19. Major Appliances 236.7 235.7 -0.4
20. Radio and Television 71.9 66.3 -7.8
21. Recreation and Education <2> 104.8 98.7 -5.8
22. Home Improvements <2> 133.1 127.6 -4.1
23. Auto Accessories <2> 107.2 106.7 -0.5

Groups 1 - 15: Soft Goods 600.1 599.9 0.0
Groups 16 - 20: Durable Goods 463.6 452.2 -2.5
Groups 21 - 23: Misc. Goods <2> 108.9 104.1 -4.4

Store Total <3> 550.7 545.0 -1.0

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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 Q. 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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