REVENUE RULE 91-66

1991-2 C.B. 328, 1991-51 I.R.B. 59.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: December 23, 1991

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

LIFO; price indexes; department stores. The October 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, October 31, 1991. [Full text in this issue.]

The following price indexes for October 1991 were issued by the Bureau of Labor Statistics on November 14, 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, October 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 October 1990/October 1991/Percent Change from Oct. 1990 to Oct. 1991 [Fn1]
1. Piece Goods 468.1 472.2 0.9
2. Domestics and Draperies 620.2 614.4 -0.9
3. Women's and Children's Shoes 621.9 626.6 .0.8
4. Men's Shoes 860.6 903.8 5.0
5. Infants' Wear 599.0 609.9 1.8
6. Women's Underwear 494.9 505.4 2.1
7. Women's Hosiery 255.3 261.1 2.3
8. Women's and Girls' Accessories 544.8 555.3 1.9
9. Women's Outerwear and Girls' Wear 424.4 439.9 3.7
10. Men's Clothing 575.8 593.4 3.1
11. Men's Furnishings 551.1 567.3 2.9
12. Boys' Clothing and Furnishings 470.9 491.4 4.4
13. Jewelry 879.7 913.0 3.8
14. Notions 556.8 608.0 9.2
15. Toilet Articles and Drugs 773.4 798.3 3.2
16. Furniture and Bedding 591.8 594.7 0.5
17. Floor Coverings 537.7 527.3 -1.9
18. Housewares 746.4 759.6 1.8
19. Major Appliances 247.2 246.1 -0.4
20. Radio and Television 90.9 88.7 -2.4
21. Recreation and Education [fn2] 112.4 114.6 2.0
22. Home Improvements [fn2] 113.5 116.7 2.8
23. Auto Accessories [fn2] 105.6 107.6 1.9
Groups 1 - 15: Soft Goods 567.4 582.3 2.6
Groups 16 - 20: Durable Goods 454.8 455.5 0.2
Groups 21 - 23: Misc. Goods [fn2] 111.2 113.5 2.1
Store Total [fn3] 529.9 540.2 1.9

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

Rev. Rul. 91-66, 1991-2 C.B. 328, 1991-51 I.R.B. 59.