REVENUE RULE 91-16

1991-1 C.B. 68, 1991-9 I.R.B. 7.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: March 4, 1991

Section 472.-Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first-out inventories.

LIFO; price indexes; department stores. The December 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, December 31, 1990.

The following price indexes for December 1990 were issued by the Bureau of Labor Statistics on January 18, 1991, 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, December 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 December 1989/December 1990/Percent Change from Dec. 1989 to Dec. 1990 [Fn1]
1. Piece Goods 443.3 474.4 7.0
2. Domestics and Draperies 594.4 604.5 1.7
3. Women's and Children's Shoes 583.0 607.5 4.2
4. Men's Shoes 839.0 864.3 3.0
5. Infants' Wear 558.2 599.8 7.5
6. Women's Underwear 479.0 494.8 3.3
7. Women's Hosiery 250.1 259.1 3.6
8. Women's and Girls' Accessories 534.7 545.8 2.1
9. Women's Outerwear and Girls' Wear 383.3 408.2 6.5
10. Men's Clothing 550.4 566.5 2.9
11. Men's Furnishings 532.3 548.1 3.0
12. Boys' Clothing and Furnishings 462.7 470.4 1.7
13. Jewelry 811.5 852.5 5.1
14. Notions 534.2 554.0 3.7
15. Toilet Articles and Drugs 744.7 777.9 4.5
16. Furniture and Bedding 577.1 586.4 1.6
17. Floor Coverings 508.2 544.7 7.2
18. Housewares 733.4 742.8 1.3
19. Major Appliances 244.0 245.4 0.6
20. Radio and Television 93.3 89.7 -3.9
21. Recreation and Education [fn2] 109.2 111.8 2.4
22. Home Improvements [fn2] 110.7 113.5 2.5
23. Auto Accessories [fn2] 105.5 107.4 1.8
Groups 1 - 15: Soft Goods 535.9 558.0 4.1
Groups 16 - 20: Durable Goods 449.5 451.8 0.5
Groups 21 - 23: Misc. Goods [fn2] 108.7 111.2 2.3
Store Total [fn3] 509.1 523.9 2.9

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 Harry-Todd Astrov of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling contact Mr. Astrov on (202) 566-3896 (not a toll-free call).

Rev. Rul. 91-16, 1991-1 C.B. 68, 1991-9 I.R.B. 7.