IRS Revenue Ruling
2001-23

Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The March 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,
March 31, 2001.


REV. RUL. 2001-23

The following Department Store Inventory Price Indexes for March 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, March 31, 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
Mar. Mar. Mar. 2000 to
Groups 2000 2001 Mar. 2001 <1>
------ ---- ---- -------------
1. Piece Goods 511.5 492.1 -3.8
2. Domestics and Draperies 614.4 597.8 -2.7
3. Women's and Children's Shoes 638.9 667.2 4.4
4. Men's Shoes 902.4 887.5 -1.7
5. Infants' Wear 649.8 632.5 -2.7
6. Women's Underwear 582.7 563.5 -3.3
7. Women's Hosiery 337.5 347.0 2.8
8. Women's and Girls' Accessories 548.1 560.3 2.2
9. Women's Outerwear and Girls' Wear 409.5 419.5 2.4
10. Men's Clothing 626.2 589.2 -5.9
11. Men's Furnishings 623.2 619.4 -0.6
12. Boys' Clothing and Furnishings 498.1 484.9 -2.7
13. Jewelry 965.3 939.5 -2.7
14. Notions 746.6 782.8 4.8
15. Toilet Articles and Drugs 968.0 989.4 2.2
16. Furniture and Bedding 693.1 646.4 -6.7
17. Floor Coverings 606.8 630.7 3.9
18. Housewares 787.4 771.7 -2.0
19. Major Appliances 235.7 225.2 -4.5
20. Radio and Television 61.0 55.5 -9.0
21. Recreation and Education <2> 94.8 90.3 -4.7
22. Home Improvements <2> 128.0 128.2 0.2
23. Auto Accessories <2> 107.6 109.2 1.5

Groups 1-15: Soft Goods 606.3 604.7 -0.3
Groups 16-20: Durable Goods 444.3 426.0 -4.1
Groups 21-23: Misc. Goods <2> 101.7 99.0 -2.7

Store Total <3> 545.5 538.3 -1.3

----------
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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