Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 73-57

1973-1 C.B. 218

IRS Headnote

If a corporation uses the LIFO method of valuing inventories for income tax purposes, the same method must be used for such inventories to the extent they are included in consolidated financial statements of any other corporation, domestic or foreign; Revenue Ruling 70-457 clarified.

Full Text

Rev. Rul. 73-57

Revenue Ruling 70-457, 1970-2 C.B. 109, holds that where a corporation uses the last-in, first-out (LIFO) method of inventory valuation for Federal income tax purposes such method must also be used with respect to such inventories to the extent such inventories are included in the consolidated financial statements of any other corporation.

Held, the application of Revenue Ruling 70-457 is not limited to domestic common parent corporations. It applies to all taxpayers using the LIFO method of inventory valuation, for Federal income tax purposes, whether or not the common parent is domestic or foreign.

Revenue Ruling 70-457 is hereby clarified.