IRS Revenue Ruling
2001-5

Code Sec. 472

<<FULL TEXT>>

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

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


REV. RUL. 2001-5

The following Department Store Inventory Price Indexes for November
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, November 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
Nov. Nov. Nov. 1999 to
Groups 1999 2000 Nov. 2000 <1>
------ ---- ---- -------------
1. Piece Goods 514.3 499.6 -2.9
2. Domestics and Draperies 622.0 610.2 -1.9
3. Women's and Children's Shoes 651.4 664.0 1.9
4. Men's Shoes 875.1 911.2 4.1
5. Infants' Wear 647.6 648.0 0.1
6. Women's Underwear 571.9 577.3 0.9
7. Women's Hosiery 328.9 347.0 5.5
8. Women's and Girls' Accessories 539.6 555.4 2.9
9. Women's Outerwear and Girls' Wear 410.3 402.0 -2.0
10. Men's Clothing 617.4 598.8 -3.0
11. Men's Furnishings 627.6 639.2 1.8
12. Boys' Clothing and Furnishings 510.2 501.3 -1.7
13. Jewelry 950.5 936.0 -1.5
14. Notions 764.6 798.0 4.4
15. Toilet Articles and Drugs 983.6 973.8 -1.0
16. Furniture and Bedding 689.7 696.6 1.0
17. Floor Coverings 602.1 625.6 3.9
18. Housewares 789.3 775.6 -1.7
19. Major Appliances 235.5 227.9 -3.2
20. Radio and Television 63.5 57.5 -9.4
21. Recreation and Education <2> 96.1 92.3 -4.0
22. Home Improvements <2> 129.2 129.2 0.0
23. Auto Accessories <2> 107.6 107.6 0.0

Groups 1-15: Soft Goods 606.9 604.6 -0.4
Groups 16-20: Durable Goods 446.9 435.6 -2.5
Groups 21-23: Misc. Goods <2> 102.7 100.1 -2.5

Store Total <3> 547.2 541.4 -1.1

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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 Associate Chief Counsel (Income Tax and Accounting). For further
information regarding this revenue ruling, contact Mr. Tomsic at (202)
622-4970 (not a toll-free call).

<<END RULING>>

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