Rev. Rul. 96-12
1996-1 C.B. 80, 1996-9 I.R.B. 4

INTERNAL REVENUE SERVICE
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: February 26, 1996

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The December 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, December 31, 1995.

The following Department Store Inventory Price Indexes for December 1995 were issued by the Bureau of Labor Statistics on February 1, 1996. The indexes are accepted by the Internal Revenue Service, under § 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, December 31, 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 December 1994/December 1995/Percent Change from Dec. 1994 to Dec. 1995 [Fn1]
1. Piece Goods 483.5 532.6 10.2
2. Domestics and Draperies 630.5 633.5 0.5
3. Women's and Children's Shoes 630.9 625.6 -0.8
4. Men's Shoes 907.3 891.0 -1.8
5. Infants' Wear 620.9 635.6 2.4
6. Women's Underwear 521.9 521.6 -0.1
7. Women's Hosiery 280.4 290.2 3.5
8. Women's and Girls' Accessories 560.6 559.9 -0.1
9. Women's Outerwear and Girls' Wear 413.9 407.1 -1.6
10. Men's Clothing 603.0 602.1 -0.1
11. Men's Furnishings 558.6 561.6 0.5
12. Boys' Clothing and Furnishings 472.4 481.8 2.0
13. Jewelry 979.4 978.1 -0.1
14. Notions 720.8 773.6 7.3
15. Toilet Articles and Drugs 854.2 870.8 1.9
16. Furniture and Bedding 637.3 669.0 5.0
17. Floor Coverings 564.2 564.5 0.1
18. Housewares 776.3 782.3 0.8
19. Major Appliances 249.4 246.1 -1.3
20. Radio and Television 83.9 79.1 -5.7
21. Recreation and Education [fn2] 114.5 112.8 -1.5
22. Home Improvements [fn2] 122.0 123.7 1.4
23. Auto Accessories [fn2] 106.6 107.5 0.8
Groups 1 - 15: Soft Goods 584.4 585.1 0.1
Groups 16 - 20: Durable Goods 463.4 462.2 -0.3
Groups 21 - 23: Misc. Goods [fn2] 114.1 113.3 -0.7
Store Total [fn3] 544.0 543.7 -0.1

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. 96-12, 1996-1 C.B. 80, 1996-9 I.R.B. 4