REVENUE RULE 91-63

1991-2 C.B. 327, 1991-50 I.R.B. 6.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: December 16, 1991

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

LIFO; price indexes; department stores. The September 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, September 30, 1991. [Full text in this issue.]

The following price indexes for September 1991 were issued by the Bureau of Labor Statistics on October 17, 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, September 30, 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 September 1990/September 1991/Percent Change from Sept. 1990 to Sept. 1991 [Fn1]
1. Piece Goods 452.3 464.0 2.6
2. Domestics and Draperies 614.6 621.7 1.2
3. Women's and Children's Shoes 611.4 621.5 1.7
4. Men's Shoes 853.6 891.5 4.4
5. Infants' Wear 600.0 607.5 1.3
6. Women's Underwear 493.5 502.7 1.9
7. Women's Hosiery 250.6 261.5 4.3
8. Women's and Girls' Accessories 538.1 548.2 1.9
9. Women's Outerwear and Girls' Wear 418.2 434.4 3.9
10. Men's Clothing 568.3 591.6 4.1
11. Men's Furnishings 542.5 560.9 3.4
12. Boys' Clothing and Furnishings 466.6 485.4 4.0
13. Jewelry 868.3 890.0 2.5
14. Notions 555.9 601.7 8.2
15. Toilet Articles and Drugs 770.0 798.2 3.7
16. Furniture and Bedding 586.6 592.3 1.0
17. Floor Coverings 543.2 534.2 -1.7
18. Housewares 743.7 759.8 2.2
19. Major Appliances 246.7 248.0 0.5
20. Radio and Television 90.9 88.9 -2.2
21. Recreation and Education [fn2] 112.6 114.5 1.7
22. Home Improvements [fn2] 112.8 116.1 2.9
23. Auto Accessories [fn2] 106.3 107.8 1.4
Groups 1 - 15: Soft Goods 561.1 577.9 3.0
Groups 16 - 20: Durable Goods 453.5 456.3 0.6
Groups 21 - 23: Misc. Goods [fn2] 111.4 113.4 1.8
Store Total [fn3] 526.2 537.9 2.2

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. 91-63, 1991-2 C.B. 327, 1991-50 I.R.B. 6.