Rev. Rul. 96-22
1996-1 C.B. 82, 1996-15 I.R.B. 9

INTERNAL REVENUE SERVICE
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: April 8, 1996

s 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first-out inventories.
LIFO; price indexes; department stores. February 1996 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 year ended on, or with reference to, February 29, 1996.

The following Department Store Inventory Price Indexes for February 1996 were issued by the Bureau of Labor Statistics on March 15, 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, February 29, 1996.

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
(February 1941 = 100, unless otherwise noted)

Groups February 1995/February 1996/Percent Change from Feb. 1995 to Feb. 1996 [Fn1]
1. Piece Goods 480.0 505.1 5.2
2. Domestics and Draperies 645.9 651.2 0.8
3. Women's and Children's Shoes 633.8 644.5 1.7
4. Men's Shoes 925.5 895.1 -3.3
5. Infants' Wear 617.3 645.3 4.5
6. Women's Underwear 518.2 522.3 0.8
7. Women's Hosiery 283.0 289.3 2.2
8. Women's and Girls' Accessories 542.0 552.3 1.9
9. Women's Outerwear and Girls' Wear 413.0 402.0 -2.7
10. Men's Clothing 602.4 619.5 2.8
11. Men's Furnishings 560.5 570.8 1.8
12. Boys' Clothing and Furnishings 488.9 476.6 -2.5
13. Jewelry 995.5 1003.4 0.8
14. Notions 750.7 813.7 8.4
15. Toilet Articles and Drugs 839.3 871.0 3.8
16. Furniture and Bedding 654.9 666.9 1.8
17. Floor Coverings 579.6 563.4 -2.8
18. Housewares 771.1 799.7 3.7
19. Major Appliances 246.4 249.2 1.1
20. Radio and Television 85.6 79.0 -7.7
21. Recreation and Education [fn2] 114.7 113.6 -1.0
22. Home Improvements [fn2] 121.3 123.1 1.5
23. Auto Accessories [fn2] 107.0 107.3 0.3
Groups 1 - 15: Soft Goods 586.4 590.0 0.6
Groups 16 - 20: Durable Goods 465.1 467.3 0.5
Groups 21 - 23: Misc. Goods [fn2] 11.4.3 113.8 -0.4
Store Total [fn3] 545.8 548.3 0.5

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. 96-22, 1996-1 C.B. 82, 1996-15 I.R.B. 9