REVENUE RULE 91-25

1991-1 C.B. 69, 1991-14 I.R.B. 4.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: April 8, 1991

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

LIFO; price indexes; department stores. The January 1991 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, 1991. [Full text in this issue.]

The following price indexes for January 1991 were issued by the Bureau of Labor Statistics on February 20, 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, January 31, 1991.

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 1990/January 1991/Percent Change from Jan. 1990 to Jan. 1991 [Fn1]
1. Piece Goods 452.0 467.6 3.5
2. Domestics and Draperies 594.8 606.9 2.0
3. Women's and Children's Shoes 570.1 598.3 4.9
4. Men's Shoes 841.4 864.7 2.8
5. Infants' Wear 549.8 595.2 8.3
6. Women's Underwear 470.7 490.6 4.2
7. Women's Hosiery 250.9 258.3 2.9
8. Women's and Girls' Accessories 520.7 540.7 3.8
9. Women's Outerwear and Girls' Wear 364.0 394.5 8.1
10. Men's Clothing 534.9 555.8 3.9
11. Men's Furnishings 525.5 542.9 3.3
12. Boys' Clothing and Furnishings 445.8 460.8 3.4
13. Jewelry 819.7 880.1 7.4
14. Notions 540.7 554.0 2.5
15. Toilet Articles and Drugs 747.7 779.8 4.3
16. Furniture and Bedding 584.7 589.7 0.9
17. Floor Coverings 508.2 545.1 7.3
18. Housewares 735.4 747.5 1.6
19. Major Appliances 243.9 246.8 1.2
20. Radio and Television 92.5 89.6 -3.1
21. Recreation and Education [fn2] 109.4 112.2 2.6
22. Home Improvements [fn2] 112.0 114.4 2.1
23. Auto Accessories [fn2] 105.4 107.5 2.0
Groups 1 - 15: Soft Goods 526.2 552.5 5.0
Groups 16 - 20: Durable Goods 450.2 453.8 0.8
Groups 21 - 23: Misc. Goods [fn2] 109.0 111.6 2.4
Store Total [fn3] 504.3 521.8 3.5

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) 566-5155 (not a toll-free call).

Rev. Rul. 91-25, 1991-1 C.B. 69, 1991-14 I.R.B. 4.