IRS Revenue Ruling
2000-39 

  Code Sec. 472

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

LIFO; price indexes; department stores. The June 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, June
30, 2000.


REV. RUL. 2000-39

The following Department Store Inventory Price Indexes for June 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, June 30, 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
June June June 1999 to
Groups 1999 2000 June 2000 <1>
------ ---- ---- -------------
1. Piece Goods 555.1 496.1 -10.6
2. Domestics and Draperies 630.1 615.8 -2.3
3. Women's and Children's Shoes 645.1 626.5 -2.9
4. Men's Shoes 876.9 926.1 5.6
5. Infants' Wear 610.1 642.2 5.3
6. Women's Underwear 561.4 568.3 1.2
7. Women's Hosiery 322.8 334.2 3.5
8. Women's and Girls' Accessories 549.3 538.3 -2.0
9. Women's Outerwear and Girls' Wear 392.0 385.0 -1.8
10. Men's Clothing 624.1 613.5 -1.7
11. Men's Furnishings 630.4 621.5 -1.4
12. Boys' Clothing and Furnishings 488.9 491.7 0.6
13. Jewelry 961.2 924.3 -3.8
14. Notions 747.4 768.3 2.8
15. Toilet Articles and Drugs 968.8 971.1 0.2
16. Furniture and Bedding 682.9 670.6 -1.8
17. Floor Coverings 602.7 607.9 0.9
18. Housewares 801.4 780.7 -2.6
19. Major Appliances 235.7 233.6 -0.9
20. Radio and Television 66.3 59.8 -9.8
21. Recreation and Education <2> 98.7 93.0 -5.8
22. Home Improvements <2> 127.6 128.2 0.5
23. Auto Accessories <2> 106.7 106.3 -0.4

Groups 1-15: Soft Goods 599.9 592.9 -1.2
Groups 16-20: Durable Goods 452.2 438.1 -3.1
Groups 21-23: Misc. Goods <2> 104.1 100.2 -3.7

Store Total <3> 545.0 534.9 -1.9

----------
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 Associate 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>>

TO CONTACT
DON FITCH CPA

Phone Don Fitch CPA Toll Free at (877)CPA-Help or (877)272-4357 or on our Direct Line at (760)674-1722.