REVENUE RULE 92-46

1992-1 C.B. 191, 1992-24 I.R.B. 84.

Internal Revenue Service
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: June 15, 1992

Section 472 - Last-in, First-out Inventories

26 CFR 1.472-1; Last-in, first-out inventories

LIFO; price indexes; department stores. The March 1992 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 March 31, 1992.

The following price indexes for March 1992 were issued by the Bureau of Labor Statistics on April 10, 1992, 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, March 31, 1992.

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 March 1991/March 1992/Percent Change from March 1991 to March 1992 [Fn1]
1. Piece Goods 461.2 469.5 1.8
2. Domestics and Draperies 621.1 633.3 2.0
3. Women's and Children's Shoes 616.3 638.4 3.6
4. Men's Shoes 879.6 907.7 3.2
5. Infants' Wear 606.8 609.8 0.5
6. Women's Underwear 503.5 514.9 2.3
7. Women's Hosiery 259.5 270.1 4.1
8. Women's and Girls' Accessories 544.3 560.1 2.9
9. Women's Outerwear and Girls' Wear 425.6 441.8 3.8
10. Men's Clothing 581.5 589.8 1.4
11. Men's Furnishings 551.1 569.2 3.3
12. Boys' Clothing and Furnishings 468.5 495.0 5.7
13. Jewelry 878.6 933.6 6.3
14. Notions 549.8 610.9 11.1
15. Toilet Articles and Drugs 789.0 810.8 2.8
16. Furniture and Bedding 589.0 609.2 3.4
17. Floor Coverings 534.4 525.0 -1.8
18. Housewares 753.8 766.7 1.7
19. Major Appliances 245.8 246.7 0.4
20. Radio and Television 91.2 88.8 -2.6
21. Recreation and Education [fn2] 113.3 114.9 1.4
22. Home Improvements [fn2] 114.9 118.4 3.0
23. Auto Accessories [fn2] 106.9 108.6 1.6
Groups 1 - 15: Soft Goods 570.1 588.8 3.3
Groups 16 - 20: Durable Goods 456.0 459.3 0.7
Groups 21 - 23: Misc. Goods [fn2] 112.3 114.2 1.7
Store Total [fn3] 532.6 545.4 2.4

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. 92-46, 1992-1 C.B. 191, 1992-24 I.R.B. 84.