IRS Revenue Ruling
2000-25

 Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The March 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,
March 31, 2000.


REV. RUL. 2000-25

The following Department Store Inventory Price Indexes for March 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, March 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
Mar. Mar. Mar. 1999 to
Groups 1999 2000 Mar. 2000 <1>
------ ---- ---- -------------
1. Piece Goods 555.8 511.5 -8.0
2. Domestics and Draperies 619.9 614.4 -0.9
3. Women's and Children's Shoes 651.0 638.9 -1.9
4. Men's Shoes 887.6 902.4 1.7
5. Infants' Wear 617.2 649.8 5.3
6. Women's Underwear 577.4 582.7 0.9
7. Women's Hosiery 321.4 337.5 5.0
8. Women's and Girls' Accessories 557.4 548.1 -1.7
9. Women's Outerwear and Girls' Wear 408.4 409.5 0.3
10. Men's Clothing 623.1 626.2 0.5
11. Men's Furnishings 611.1 623.2 2.0
12. Boys' Clothing and Furnishings 488.6 498.1 1.9
13. Jewelry 977.8 965.3 -1.3
14. Notions 785.7 746.6 -5.0
15. Toilet Articles and Drugs 957.3 968.0 1.1
16. Furniture and Bedding 690.9 693.1 0.3
17. Floor Coverings 602.4 606.8 0.7
18. Housewares 803.5 787.4 -2.0
19. Major Appliances 233.9 235.7 0.8
20. Radio and Television 67.9 61.0 -10.2
21. Recreation and Education <2> 99.9 94.8 -5.1
22. Home Improvements <2> 128.5 128.0 -0.4
23. Auto Accessories <2> 107.4 107.6 0.2

Groups 1-15: Soft Goods 603.6 606.3 0.4
Groups 16-20: Durable Goods 454.6 444.3 -2.3
Groups 21-23: Misc. Goods <2> 105.1 101.7 -3.2

Store Total <3> 548.5 545.5 -0.5

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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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