IRS Revenue Ruling
2001-41

Code Sec. 472

<<FULL TEXT>>

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

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


REV. RUL. 2001-41

The following Department Store Inventory Price Indexes for June 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, June 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
June June June 2000 to
Groups 2000 2001 June 2001 <1>
------ ---- ---- -------------
1. Piece Goods 496.1 478.7 -3.5
2. Domestics and Draperies 615.8 603.2 -2.0
3. Women's and Children's Shoes 626.5 644.8 2.9
4. Men's Shoes 926.1 888.8 -4.0
5. Infants' Wear 642.2 605.2 -5.8
6. Women's Underwear 568.3 562.2 -1.1
7. Women's Hosiery 334.2 354.0 5.9
8. Women's and Girls' Accessories 538.3 547.3 1.7
9. Women's Outerwear and Girls' Wear 385.0 378.1 -1.8
10. Men's Clothing 613.5 582.1 -5.1
11. Men's Furnishings 621.5 599.6 -3.5
12. Boys' Clothing and Furnishings 491.7 488.5 -0.7
13. Jewelry 924.3 936.8 1.4
14. Notions 768.3 780.7 1.6
15. Toilet Articles and Drugs 971.1 963.4 -0.8
16. Furniture and Bedding 670.6 639.9 -4.6
17. Floor Coverings 607.9 615.4 1.2
18. Housewares 780.7 767.7 -1.7
19. Major Appliances 233.6 225.9 -3.3
20. Radio and Television 59.8 53.9 -9.9
21. Recreation and Education <2> 93.0 90.1 -3.1
22. Home Improvements <2> 128.2 124.7 -2.7
23. Auto Accessories <2> 106.3 109.1 2.6

Groups 1-15: Soft Goods 592.9 584.1 -1.5
Groups 16-20: Durable Goods 438.1 422.5 -3.6
Groups 21-23: Misc. Goods <2> 100.2 98.5 -1.7

Store Total <3> 534.9 524.5 -1.9

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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)
622-4930 (not a toll-free call).

<<END RULING>>

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