RS Revenue Ruling
2001-9

Code Sec. 472

<<FULL TEXT>>

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

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


REV. RUL. 2001-9

The following Department Store inventory Price Indexes for December
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, December 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
Dec. Dec. Dec. 1999 to
Groups 1999 2000 Dec. 2000 <1>
------ ---- ---- -------------
1. Piece Goods 512.9 489.0 -4.7
2. Domestics and Draperies 619.5 614.5 -0.8
3. Women's and Children's Shoes 631.0 647.4 2.6
4. Men's Shoes 887.4 901.8 1.6
5. Infants' Wear 650.0 631.7 -2.8
6. Women's Underwear 561.6 567.2 1.0
7. Women's Hosiery 325.0 342.9 5.5
8. Women's and Girls' Accessories 526.2 533.8 1.4
9. Women's Outerwear and Girls' Wear 393.5 381.8 -3.0
10. Men's Clothing 610.1 584.0 -4.3
11. Men's Furnishings 626.0 618.3 -1.2
12. Boys'Clothing and Furnishings 506.4 487.8 -3.7
13. Jewelry 924.8 910.2 -1.6
14. Notions 768.3 795.1 3.5
15. Toilet Articles and Drugs 981.7 984.4 0.3
16. Furniture and Bedding 688.5 692.8 0.6
17. Floor Coverings 602.7 628.7 4.3
18. Housewares 786.9 769.3 -2.2
19. Major Appliances 234.9 229.6 -2.3
20. Radio and Television 63.2 57.1 -9.7
21. Recreation and Education <2> 95.3 91.8 -3.7
22. Home Improvements <2> 129.3 129.3 0.0
23. Auto Accessories <2> 107.3 108.2 0.8

Groups 1-15: Soft Goods 596.7 589.8 -1.2
Groups 16-20: Durable Goods 445.6 433.9 -2.6
Groups 21-23: Misc. Goods <2> 102.1 100.0 -2.1

Store Total <3> 540.2 531.7 -1.6

----------
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>>

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.