IRS Revenue Ruling
2001-18

 Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The February 2001 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 28, 2001.


REV. RUL. 2001-18

The following Department Store Inventory Price Indexes for February
2001 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 28, 2001.

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. 2000 to
Groups 2000 2001 Feb. 2001 <1>
------ ---- ---- -------------
1. Piece Goods 502.6 507.2 0.9
2. Domestics and Draperies 611.8 606.8 -0.8
3. Women's and Children's Shoes 612.7 642.9 4.9
4. Men's Shoes 893.0 881.9 -1.2
5. Infants' Wear 648.8 620.5 -4.4
6. Women's Underwear 577.0 563.4 -2.4
7. Women's Hosiery 330.8 351.5 6.3
8. Women's and Girls' Accessories 542.1 550.1 1.5
9. Women's Outerwear and Girls' Wear 381.7 388.0 1.7
10. Men's Clothing 622.6 594.4 -4.5
11. Men's Furnishings 619.2 608.1 -1.8
12. Boys' Clothing and Furnishings 496.2 484.7 -2.3
13. Jewelry 973.4 943.6 -3.1
14. Notions 763.6 794.5 4.0
15. Toilet Articles and Drugs 967.0 986.1 2.0
16. Furniture and Bedding 700.0 685.9 -2.0
17. Floor Coverings 604.0 630.2 4.3
18. Housewares 787.3 774.9 -1.6
19. Major Appliances 233.9 227.8 -2.6
20. Radio and Television 61.5 56.3 -8.5
21. Recreation and Education <2> 94.2 90.7 -3.7
22. Home Improvements <2> 128.1 128.0 -0.1
23. Auto Accessories <2> 107.3 108.8 1.4

Groups 1-15: Soft Goods 593.9 592.0 -0.3
Groups 16-20: Durable Goods 444.9 433.1 -2.7
Groups 21-23: Misc. Goods <2> 101.3 99.2 -2.1

Store Total <3> 537.7 532.4 -1.0

----------
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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