Rev. Rul. 96-60
1996-2 C.B. 43, 1996-51 I.R.B. 4

INTERNAL REVENUE SERVICE
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: December 16, 1996

Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
LIFO; price indexes; department stores. The October 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, October 31, 1996.

The following Department Store Inventory Price Indexes for October 1996 were issued by the Bureau of Labor Statistics on November 14, 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, October 31, 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 October 1995/October 1996/Percent Change from Oct. 1995 to Oct. 1996 [Fn1]
1. Piece Goods 508.6 561.0 10.3
2. Domestics and Draperies 664.7 641.0 -3.6
3. Women's and Children's Shoes 647.5 661.8 2.2
4. Men's Shoes 930.1 920.1 -1.1
5. Infants' Wear 633.8 626.4 -1.2
6. Women's Underwear 522.6 536.8 2.7
7. Women's Hosiery 290.7 285.7 -1.7
8. Women's and Girls' Accessories 558.3 557.5 -0.1
9. Women's Outerwear and Girls' Wear 430.5 417.5 -3.0
10. Men's Clothing 621.1 621.9 0.1
11. Men's Furnishings 572.1 581.7 1.7
12. Boys' Clothing and Furnishings 501.9 490.7 -2.2
13. Jewelry 1014.3 1043.6 2.9
14. Notions 782.3 797.3 1.9
15. Toilet Articles and Drugs 868.7 901.4 3.8
16. Furniture and Bedding 666.4 667.5 0.2
17. Floor Coverings 567.4 585.2 3.1
18. Housewares 801.2 808.1 0.9
19. Major Appliances 248.9 246.2 -1.1
20. Radio and Television 80.6 77.8 -3.5
21. Recreation and Education [fn2] 114.0 111.8 -1.9
22. Home Improvements [fn2] 122.1 125.6 2.9
23. Auto Accessories [fn2] 107.0 107.4 0.4
Groups 1 - 15: Soft Goods 603.0 603.4 0.1
Groups 16 - 20: Durable Goods 469.3 467.7 -0.3
Groups 21 - 23: Misc. Goods [fn2] 113.9 112.9 -0.9
Store Total [fn3] 556.9 556.1 -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. 96-60, 1996-2 C.B. 43, 1996-51 I.R.B. 4