Rev. Rul. 96-54
1996-2 C.B. 42, 1996-47 I.R.B. 5

INTERNAL REVENUE SERVICE
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: November 18, 1996

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The September 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, September 30, 1996.

The following Department Store Inventory Price Indexes for September 1996 were issued by the Bureau of Labor Statistics on October 16, 1996. The indexes are accepted by the 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, 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 September 1995/September 1996/Percent Change from Sept. 1995 to Sept. 1996 [Fn1]
1. Piece Goods 538.3 534.8 -0.7
2. Domestics and Draperies 663.4 644.1 -2.9
3. Women's and Children's Shoes 646.4 647.9 0.2
4. Men's Shoes 926.9 916.1 -1.2
5. Infants' Wear 627.1 631.9 0.8
6. Women's Underwear 517.1 536.0 3.7
7. Women's Hosiery 285.7 289.0 1.2
8. Women's and Girls' Accessories 555.5 557.1 0.3
9. Women's Outerwear and Girls' Wear 418.9 407.2 -2.8
10. Men's Clothing 619.5 612.0 -1.2
11. Men's Furnishings 558.7 573.6 2.7
12. Boys' Clothing and Furnishings 482.8 489.8 1.4
13. Jewelry 1031.4 1040.3 0.9
14. Notions 803.3 795.2 -1.0
15. Toilet Articles and Drugs 863.0 895.9 3.8
16. Furniture and Bedding 665.6 675.6 1.5
17. Floor Coverings 563.1 589.9 4.8
18. Housewares 798.9 810.0 1.4
19. Major Appliances 249.7 247.1 -1.0
20. Radio and Television 81.7 77.2 -5.5
21. Recreation and Education [fn2] 114.3 111.4 -2.5
22. Home Improvements [fn2] 121.7 125.9 3.5
23. Auto Accessories [fn2] 106.9 107.0 0.1
Groups 1 - 15: Soft Goods 596.7 596.8 0.0
Groups 16 - 20: Durable Goods 470.1 469.0 -0.2
Groups 21 - 23: Misc. Goods [fn2] 114.0 112.6 -1.2
Store Total [fn3] 553.2 552.2 -0.2

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. 96-54, 1996-2 C.B. 42, 1996-47 I.R.B. 5