IRS Revenue Ruling
2000-14

Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The January 2000 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, 2000.


REV. RUL. 2000-14

The following Department Store Inventory Price Indexes for January 2000
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, 2000.

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. 1999 to
Groups 1999 2000 Jan. 2000 <1>
------ ---- ---- -------------
1. Piece Goods 507.3 493.8 -2.7
2. Domestics and Draperies 643.1 622.0 -3.3
3. Women's and Children's Shoes 640.4 613.3 -4.2
4. Men's Shoes 894.0 887.2 -0.8
5. Infants' Wear 628.6 650.8 3.5
6. Women's Underwear 560.7 571.4 1.9
7. Women's Hosiery 316.2 327.6 3.6
8. Women's and Girls' Accessories 535.4 530.3 -1.0
9. Women's Outerwear and Girls' Wear 376.9 369.1 -2.1
10. Men's Clothing 603.8 612.9 1.5
11. Men's Furnishings 585.2 618.0 5.6
12. Boys' Clothing and Furnishings 482.1 497.1 3.1
13. Jewelry 965.3 962.0 -0.3
14. Notions 729.7 764.5 4.8
15. Toilet Articles and Drugs 946.8 970.9 2.5
16. Furniture and Bedding 678.4 697.0 2.7
17. Floor Coverings 602.4 603.2 0.1
18. Housewares 813.6 789.9 -2.9
19. Major Appliances 237.7 233.3 -1.9
20. Radio and Television 69.6 62.7 -9.9
21. Recreation and Education <2> 100.7 95.2 -5.5
22. Home Improvements <2> 130.3 129.8 -0.4
23. Auto Accessories <2> 107.8 107.6 -0.2

Groups 1-15: Soft Goods 586.4 588.6 0.4
Groups 16-20: Durable Goods 459.0 446.2 -2.8
Groups 21-23: Misc. Goods <2> 106.0 102.2 -3.6

Store Total <3> 539.4 535.4 -0.7

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1/ Absence of a minus sign before the percentage change in this column
signifies a 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. Tornsic of the
Office of Assistant Chief Counsel (Income Tax and Accounting). For further
information regarding this revenue ruling, contact Mr. Tornsic on (202)
622-4970 (not a toll-free call).

<<END RULING>>

 

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