IRS Revenue Ruling
2001-66

Code Sec. 472

<<FULL TEXT>>

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

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



REV. RUL. 2001-66

The following Department Store Inventory Price Indexes for October 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, October 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
Oct. Oct. Oct. 2000 to
Groups 2000 2001 Oct. 2001 <1>
------ ---- ---- -------------
1. Piece Goods 502.4 500.3 -0.4
2. Domestics and Draperies 608.5 592.0 -2.7
3. Women's and Children's Shoes 661.5 675.5 2.1
4. Men's Shoes 915.5 872.5 -4.7
5. Infants' Wear 649.0 631.1 -2.8
6. Women's Underwear 579.6 575.3 -0.7
7. Women's Hosiery 346.2 358.0 3.4
8. Women's and Girls' Accessories 555.6 573.7 3.3
9. Women's Outerwear and Girls' Wear 414.1 398.4 -3.8
10. Men's Clothing 601.0 587.3 -2.3
11. Men's Furnishings 632.7 628.2 -0.7
12. Boys' Clothing and Furnishings 494.4 490.5 -0.8
13. Jewelry 937.1 919.6 -1.9
14. Notions 792.8 797.1 0.5
15. Toilet Articles and Drugs 971.1 981.6 1.1
16. Furniture and Bedding 704.3 628.8 -10.7
17. Floor Coverings 627.7 616.0 -1.9
18. Housewares 778.0 767.1 -1.4
19. Major Appliances 228.6 224.1 -2.0
20. Radio and Television 57.9 52.6 -9.2
21. Recreation and Education <2> 92.6 89.2 -3.7
22. Home Improvements <2> 128.9 125.4 -2.7
23. Auto Accessories <2> 106.7 110.2 3.3

Groups 1-15: Soft Goods 607.3 598.6 -1.4
Groups 16-20: Durable Goods 437.8 419.1 -4.3
Groups 21-23: Misc. Goods <2> 100.1 98.2 -1.9

Store Total <3> 543.6 532.4 -2.1

----------
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 Michael Burkom of the
Office of Associate Chief Counsel (Income Tax and Accounting). For further
information regarding this revenue ruling, contact Mr. Burkom at (202)
622-7718 (not a toll-free call).

<<END RULING>>
 

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