IRS Revenue Ruling
2000-21

  Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes, department stores. The February 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,
February 29, 2000.


REV. RUL. 2000-21

The following Department Store Inventory Price Indexes for February
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, February 29, 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
Feb. Feb. Feb. 1999 to
Groups 1999 2000 Feb. 2000 <1>
------ ---- ---- -------------
1. Piece Goods 496.2 502.6 1.3
2. Domestics and Draperies 643.1 611.8 -4.9
3. Women's and Children's Shoes 632.3 612.7 -3.1
4. Men's Shoes 889.8 893.0 0.4
5. Infants' Wear 619.6 648.8 4.7
6. Women's Underwear 565.8 577.0 2.0
7. Women's Hosiery 320.0 330.8 3.4
8. Women's and Girls' Accessories 549.6 542.1 -1.4
9. Women's Outerwear and Girls' Wear 380.3 381.7 0.4
10. Men's Clothing 617.4 622.6 0.8
11. Men's Furnishings 592.2 619.2 4.6
12. Boys' Clothing and Furnishings 478.3 496.2 3.7
13. Jewelry 983.3 973.4 -1.0
14. Notions 741.9 763.6 2.9
15. Toilet Articles and Drugs 951.6 967.0 1.6
16. Furniture and Bedding 679.2 700.0 3.1
17. Floor Coverings 602.7 604.0 0.2
18. Housewares 808.2 787.3 -2.6
19. Major Appliances 233.8 233.9 0.0
20. Radio and Television 69.0 61.5 -10.9
21. Recreation and Education <2> 100.1 94.2 -5.9
22. Home Improvements <2> 129.8 128.1 -1.3
23. Auto Accessories <2> 107.7 107.3 -0.4

Groups   1-15: Soft Goods 590.3 593.9 0.6
Groups 16-20: Durable Goods 455.6 444.9 -2.3
Groups 21-23: Misc. Goods <2> 105.5 101.3 -4.0

Store Total <3> 540.7 537.7 -0.6

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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. 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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