REVENUE RULE 95-76

1995-2 C.B. 75, 1995-47 I.R.B. 5

Internal Revenue Service

Revenue Rule

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: November 20, 1995

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The September 1995 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, 1995.

The following Department Store Inventory Price Indexes for September 1995 were issued by the Bureau of Labor Statistics on October 13, 1995. The indexes Internal Revenue Service, under s 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, 1995.

The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups--soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, foods, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100, unless otherwise noted)

Groups September 1994/September 1995/Percent Change from Sept. 1994 to Sept. 1995 [Fn1]
1. Piece Goods 469.6 538.3 14.6
2. Domestics and Draperies 652.3 663.4 1.7
3. Women's and Children's Shoes 639.0 646.4 1.2
4. Men's Shoes 907.4 926.9 2.1
5. Infants' Wear 611.5 627.1 2.6
6. Women's Underwear 529.0 517.1 -2.2
7. Women's Hosiery 272.1 285.7 5.0
8. Women's and Girls' Accessories 567.3 555.5 -2.1
9. Women's Outerwear and Girls' Wear 432.2 418.9 -3.1
10. Men's Clothing 612.9 619.5 1.1
11. Men's Furnishings 566.8 558.7 -1.4
12. Boys' Clothing and Furnishings 488.2 482.8 -1.1
13. Jewelry 1026.2 1031.4 0.5
14. Notions 768.5 803.3 4.5
15. Toilet Articles and Drugs 851.0 863.0 1.4
16. Furniture and Bedding 640.6 665.6 3.9
17. Floor Coverings 558.3 563.1 0.9
18. Housewares 777.4 798.9 2.8
19. Major Appliances 248.5 249.7 0.5
20. Radio and Television 84.7 81.7 -3.5
21. Recreation and Education [fn2] 115.0 114.3 -0.6
22. Home Improvements [fn2] 120.7 121.7 0.8
23. Auto Accessories [fn2] 105.8 106.9 1.0
Groups 1 - 15: Soft Goods 597.8 596.7 -0.2
Groups 16 - 20: Durable Goods 464.3 470.1 1.2
Groups 21 - 23: Misc. Goods [fn2] 114.0 114.0 40.0
Store Total [fn3] 551.4 553.2 0.3

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, including some not listed separately, except for the following: candy, foods, liquor, tobacco, and contract departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Stan Michaels of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Michaels on (202) 622- 4970 (not a toll-free call).

Rev. Rul. 95-76, 1995-2 C.B. 75, 1995-47 I.R.B. 5