Rev. Rul. 96-9
1996-1 C.B. 79, 1996-4 I.R.B. 5

INTERNAL REVENUE SERVICE
Revenue Ruling

LIFO; PRICE INDEXES; DEPARTMENT STORES

Published: January 22, 1996

s 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first-out inventories.

LIFO; price indexes; department stores. The November 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, November 30, 1995.

LIFO; price indexes; department stores. The November 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, November 30, 1995.

The following Department Store Inventory Price Indexes for November 1995 were issued by the Bureau of Labor Statistics on December 14, 1995. 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, November 30, 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 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 November 1994/November 1995/Percent Change from Nov. 1994 to Nov. 1995 [Fn1]
1. Piece Goods 486.9 509.3 4.6
2. Domestics and Draperies 641.4 632.0 -1.5
3. Women's and Children's Shoes 640.6 637.8 -0.4
4. Men's Shoes 914.2 921.8 0.8
5. Infants' Wear 623.0 636.8 2.2
6. Women's Underwear 529.5 527.8 -0.3
7. Women's Hosiery 281.1 288.2 2.5
8. Women's and Girls' Accessories 578.0 559.8 -3.1
9. Women's Outerwear and Girls' Wear 432.0 419.3 -2.9
10. Men's Clothing 614.9 623.7 1.4
11. Men's Furnishings 577.5 572.7 -0.8
12. Boys' Clothing and Furnishings 486.9 485.5 -0.3
13. Jewelry 1007.9 1001.1 -0.7
14. Notions 748.5 776.6 3.8
15. Toilet Articles and Drugs 852.9 875.3 2.6
16. Furniture and Bedding 637.5 661.2 3.7
17. Floor Coverings 553.8 555.4 0.3
18. Housewares 781.1 248.7 0.1
19. Major Appliances 248.4 248.7 0.1
20. Radio and Television 84.3 79.9 -5.2
21. Recreation and Education [fn2] 115.3 113.4 -1.6
22. Home Improvements [fn2] 120.8 121.9 0.9
23. Auto Accessories [fn2] 106.3 107.0 0.7
Groups 1 - 15: Soft Goods 598.6 595.2 -0.6
Groups 16 - 20: Durable Goods 464.1 465.0 0.2
Groups 21 - 23: Misc. Goods [fn2] 114.4 113.5 -0.8
Store Total [fn3] 552.1 550.7 -0.3

FN1 Absence of a minus sign before percentage change in this column signifies
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. 96-9, 1996-1 C.B. 79, 1996-4 I.R.B. 5