IRS Revenue Ruling
2001-28

Code Sec. 472

<<FULL TEXT>>

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

LIFO; price indexes; department stores. The April 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,
April 30, 2001.


REV. RUL. 2001-28

The following Department Store Inventory Price Indexes for April 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, April 30, 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
Apr. Apr. Apr. 2000 to
Groups 2000 2001 Apr. 2001 <1>
------ ---- ---- -------------
1. Piece Goods 516.8 497.9 -3.7
2. Domestics and Draperies 631.1 606.5 -3.9
3. Women's and Children's Shoes 646.0 657.4 1.8
4. Men's Shoes 919.2 895.3 -2.6
5. Infants' Wear 642.5 626.8 -2.4
6. Women's Underwear 576.2 565.5 -1.9
7. Women's Hosiery 334.2 344.8 3.2
8. Women's and Girls' Accessories 553.3 557.3 0.7
9. Women's Outerwear and Girls' Wear 413.3 414.5 0.3
10. Men's Clothing 615.3 591.8 -3.8
11. Men's Furnishings 631.7 618.7 -2.1
12. Boys' Clothing and Furnishings 497.5 485.0 -2.5
13. Jewelry 971.9 938.6 -3.4
14. Notions 757.6 793.4 4.7
15. Toilet Articles and Drugs 971.5 991.0 2.0
16. Furniture and Bedding 680.8 650.3 -4.5
17. Floor Coverings 607.4 626.8 3.2
18. Housewares 782.1 773.8 -1.1
19. Major Appliances 234.8 224.8 -4.3
20. Radio and Television 60.0 55.2 -8.0
21. Recreation and Education <2> 94.9 90.3 -4.8
22. Home Improvements <2> 128.0 127.0 -0.8
23. Auto Accessories <2> 106.5 109.0 2.3

Groups, 1-15: Soft Goods 610.5 603.2 -1.2
Groups 16-20: Durable Goods 440.3 426.5 -3.1
Groups 21-23: Misc. Goods <2> 101.5 98.9 -2.6

Store Total <3> 547.0 537.5 -1.7

----------
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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