Rev. Rul. 96-31
1996-1 C.B. 84, 1996-25 I.R.B. 4

INTERNAL REVENUE SERVICE
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: June 17, 1996

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The April 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 years ended on, or with reference to, April 30, 1996.

The following Department Store Inventory Price Indexes for April 1996 were issued by the Bureau of Labor Statistics on May 14, 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, April 30, 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
(January 1941 = 100, unless otherwise noted)

Groups April 1995/April 1996/Percent Change from April 1995 to April 1996 [Fn1]
1. Piece Goods 485.2 528.6 8.9
2. Domestics and Draperies 642.6 655.0 1.9
3. Women's and Children's Shoes 639.1 658.2 3.0
4. Men's Shoes 919.0 899.6 -2.1
5. Infants' Wear 613.8 640.9 4.4
6. Women's Underwear 540.1 538.5 -0.3
7. Women's Hosiery 281.3 285.7 1.6
8. Women's and Girls' Accessories 545.3 554.9 1.8
9. Women's Outerwear and Girls' Wear 448.3 430.9 -3.9
10. Men's Clothing 613.4 625.7 2.0
11. Men's Furnishings 573.0 590.3 3.0
12. Boys' Clothing and Furnishings 494.1 491.2 -0.6
13. Jewelry 1024.3 1036.3 1.2
14. Notions 779.7 785.1 0.7
15. Toilet Articles and Drugs 850.8 883.3 3.8
16. Furniture and Bedding 649.4 672.2 3.5
17. Floor Coverings 570.2 571.1 0.2
18. Housewares 778.8 802.9 3.1
19. Major Appliances 245.7 246.8 0.4
20. Radio and Television 85.4 79.6 -6.8
21. Recreation and Education [fn2] 114.2 113.7 -0.4
22. Home Improvements [fn2] 122.7 125.7 2.4
23. Auto Accessories [fn2] 106.9 107.3 0.4
Groups 1 - 15: Soft Goods 604.0 608.2 0.7
Groups 16 - 20: Durable Goods 465.7 468.8 0.7
Groups 21 - 23: Misc. Goods [fn2] 114.1 114.1 0.0
Store Total [fn3] 556.6 560.1 0.6

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. 96-31, 1996-1 C.B. 84, 1996-25 I.R.B. 4