IRS Revenue Ruling
2000-3

Code Sec. 472

Status: Obsoleted by 2001-31


<<FULL TEXT>>

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

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


REV. RUL. 2000-3

The following Department Store Inventory Price Indexes for November
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, November 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
Nov. Nov. Nov. 1998 to
Groups 1998 1999 Nov. 1999 <1>
------ ---- ---- -------------
1. Piece Goods 544.5 514.3 -5.5
2. Domestics and Draperies 635.9 622.0 -2.2
3. Women's and Children's Shoes 685.8 651.4 -5.0
4. Men's Shoes 916.9 875.1 -4.6
5. Infants' Wear 638.3 647.6 1.5
6. Women's Underwear 570.4 571.9 0.3
7. Women's Hosiery 308.4 328.9 6.6
8. Women's and Girls' Accessories 546.5 539.6 -1.3
9. Women's Outerwear and Girls' Wear 417.0 410.3 -1.6
10. Men's Clothing 619.5 617.4 -0.3
11. Men's Furnishings 608.4 627.6 3.2
12. Boys' Clothing and Furnishings 519.0 510.2 -1.7
13. Jewelry 977.1 950.5 -2.7
14. Notions 766.3 764.6 -0.2
15. Toilet Articles and Drugs 945.3 983.6 4.1
16. Furniture and Bedding 686.8 689.7 0.4
17. Floor Coverings 602.2 602.1 0.0
18. Housewares 811.3 789.3 -2.7
19. Major Appliances 238.9 235.5 -1.4
20. Radio and Television 70.1 63.5 -9.4
21. Recreation and Education <2> 102.2 96.1 -6.0
22. Home Improvements <2> 129.6 129.2 -0.3
23. Auto Accessories <2> 107.9 107.6 -0.3

Groups 1-15: Soft Goods 610.0 606.9 -0.5
Groups 16-20: Durable Goods 460.4 446.9 -2.9
Groups 21-23: Misc. Goods <2> 106.9 102.7 -3.9

Store Total <3> 554.9 547.2 -1.4

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

<<END RULING>>

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