Rev. Rul. 84-90
1984-1 C.B. 132, 1984-26 I.R.B. 6.
Internal Revenue Service
Revenue Ruling
LIFO; PRICE INDEXES; DEPARTMENT STORES
Published: June 25, 1984
Section 170. - -Charitable, Etc., Contributions and Gifts, 26 CFR 1.170A-1: Charitable, etc., contributions and gifts, allowance of deduction.
Section 472. - -Last-In, First-Out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The February 1984 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods of valuing inventories for tax years ended on, or with reference to, February 29, 1984.
In the past, the Internal Revenue Service accepted and republished the department store inventory price indexes that were published semiannually by the Bureau of Labor Statistics for January and July. The indexes were accepted as appropriate for use by department stores employing the retail inventory and last-in, first-out (LIFO) inventory method, but only for tax years ending on December 31 or January 31 with respect to the January index, or June 30 or July 31 with respect to the July index. However the Bureau of Labor Statistics now issues the department store inventory price indexes monthly. Therefore, the department store inventory indexes will be available to all department stores employing the retail inventory and LIFO inventory method regardless of when their tax years end.
Price indexes for February 1984 were issued by the Bureau of Labor Statistics on March 26, 1984, for use by department stores and are accepted by the Internal Revenue Service, under section 1.472-1(k) of the Income Tax Regulations and Rev. Proc. 72-21, 1972-1 C.B. 745, for appropriate application to inventories of department stores employing the retail inventory and LIFO inventory methods for tax years ended on, or with reference to, February 29, 1984.
Indexes are prepared on a national basis for the store total, for 20 major groups of departments, and for two special combinations--soft and durable goods. The store total index covers all departments, including some not listed separately, with the following exceptions: candy, food, liquor, tobacco, paints, and wallpaper, as well as contract departments.
A department store using the retail inventory and LIFO inventory methods may not change to the department store inventory price indexes prepared by the Bureau of Labor Statistics and accepted by the Service, without first securing the consent of the Commissioner. The change constitutes a change in method of accounting to which section 446 of the Internal Revenue Code and the related regulations will apply.
BUREAU OF LABOR-STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY
DEPARTMENT GROUPS
(January 1941 = 100)
February February Percentage
1983 1984 Change
from
February
1983 to
February
1984 [FN1]
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I. Piece Goods ....................... 394.6 399.2 1.2
II. Domestics and Draperies ........... 527.9 532.0 0.8
III. Women's and Children's Shoes ...... 543.0 537.5 -1.0
IV. Men's and Boy's Shoes ............. 672.4 688.6 2.4
V. Infants' Wear ..................... 471.1 475.6 1.0
VI. Women's Underwear ................. 395.1 413.1 4.6
VII. Women's and Girls' Hosiery ........ 225.2 231.7 2.9
VIII. Women's and Girls' Accessories .... 411.7 423.5 2.9
IX. Women's Outerwear and Girls'
Wear ............................ 320.3 324.3 1.2
X. Men's Clothing .................... 441.9 445.8 0.9
XI. Men's Furnishings ................. 447.7 455.8 1.8
XII. Boys' Clothing and Furnishings .... 406.5 422.3 3.9
XIII. Jewelry ........................... 690.3 689.7 -0.1
XIV. Notions ........................... 461.4 470.7 2.0
XV. Toilet Articles and Drugs ......... 571.4 612.2 7.1
XVI. Furniture and Bedding ............. 502.5 509.5 1.4
XVII. Floor Coverings ................... 423.3 445.7 5.3
XVIII. Housewares ........................ 719.7 727.0 1.0
XIX. Major Appliances .................. 238.4 239.7 0.5
XX. Radio and Television .............. 116.1 113.4 -2.3
Groups I-SV: Soft Goods ........... 448.9 458.5 2.1
Groups XVI-XX: Durable Goods ...... 437.2 442.1 1.1
Store Total ....................... 445.4 453.9 1.9
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FN1. Absence of a minus sign before percentage change in this column signifies
price increases.
Rev. Rul. 84-90, 1984-1 C.B. 132, 1984-26 I.R.B. 6.