REVENUE RULE 90-33

1990-1 C.B. 114, 1990-16 I.R.B. 5.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: April 16, 1990

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories, 26 CFR 1.472-1: Last-in, first-out inventories.
LIFO; price indexes; department stores. The January 1990 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, January 31, 1990.

The following price indexes for January 1990 were issued by the Bureau of Labor Statistics on February 23, 1990, 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. 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, January 31, 1990.

Indexes are prepared on a national basis for the store total, for 23 major groups of departments, and for three special combinations - soft goods, durable goods and miscellaneous goods. The store total index covers all departments, including some not listed separately, with the following exceptions: candy, foods, liquor, tobacco, as well as contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100 unless otherwise noted)

Groups January 1989/January 1990/Percent Change from Jan. 1989 to Jan. 1990 [Fn1]
1. Piece Goods 409.8 452.0 10.3
2. Domestics and Draperies 591.2 594.8 0.6
3. Women's and Children's Shoes 570.7 570.1 -0.1
4. Men's Shoes 832.4 841.4 1.1
5. Infants' Wear 553.0 549.8 -0.6
6. Women's Underwear 466.2 470.7 1.0
7. Women's Hosiery 246.4 250.9 1.8
8. Women's and Girls' Accessories 503.2 520.7 3.3
9. Women's Outerwear and Girls' Wear 367.9 364.9 -0.8
10. Men's Clothing 527.0 534.9 1.5
11. Men's Furnishings 517.9 525.5 1.5
12. Boys' Clothing and Furnishings 457.8 445.8 -2.6
13. Jewelry 785.3 819.7 4.4
14. Notions 522.3 540.7 3.5
15. Toilet Articles and Drugs 724.0 747.7 3.3
16. Furniture and Bedding 586.8 584.7 -0.4
17. Floor Coverings 508.7 508.2 -0.1
18. Housewares 735.6 735.4 0.0
19. Major Appliances 248.8 243.9 - 2.0
20. Radio and Television 94.6 92.5 -2.2
21. Recreation and Education [fn2] 107.8 109.4 1.5
22. Home Improvements [fn2] 105.9 112.0 5.8
23. Auto Accessories [fn2] 104.2 105.4 1.2
Groups 1 - 15: Soft Goods 521.3 526.2 0.9
Groups 16 - 20: Durable Goods 454.1 450.2 -0.9
Groups 21 - 23: Misc. Goods [fn2] 106.7 109.0 2.2
Store Total [fn3] 500.6 504.3 0.7

FN1. Absence of a minus sign before percentage change in this column signifies price increase.
FN2. Indexes on a January 1986 = 100 base.
FN3. The store total index covers all departments, with the following exceptions: Candy, foods, liquor, tobacco, as well as contract departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Eliot L. Kaplan of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling contact Mr. Kaplan on (202) 343-2383 (not a toll-free call).

Rev. Rul. 90-33, 1990-1 C.B. 114, 1990-16 I.R.B. 5.