Rev. Rul. 99-31, 1999-37 I.R.B. 410.

                       Internal Revenue Service
                                 Revenue Ruling

                     LIFO; PRICE INDEXES; DEPARTMENT STORES

                         Published: September 13, 1999

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

  LIFO; price indexes; department stores. The July 1999 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, July 31, 1999.

  LIFO; price indexes; department stores. The July 1999 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, July 31, 1999.

  The following Department Store Inventory Price Indexes for July 1999 were issued by the Bureau of Labor Statistics. 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, July 31, 1999.

  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, food, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY
                               DEPARTMENT GROUPS
                  (January 1941 = 100, unless otherwise noted)
               Groups                   July 1998     July 1999      Percent
                                                                      Change
                                                                    from July
                                                                     1998 to
                                                                    July 1999
                                                                      [FN1]
1. Piece Goods ............................. 547.7         551.4           0.7
2. Domestics and Draperies ................. 626.7         632.6           0.9
3. Women's and Children's Shoes ............ 642.3         635.4          -1.1
4. Men's Shoes ............................. 906.5         874.8          -3.5
5. Infants' Wear ........................... 606.8         615.1           1.4
6. Women's Underwear ....................... 573.1         560.8          -2.1
7. Women's Hosiery ......................... 307.6         321.3           4.5
8. Women's and Girls' Accessories .......... 539.3         532.8          -1.2
9. Women's Outerwear and Girls' Wear ....... 389.3         367.0          -5.7
10. Men's Clothing .......................... 613.4         616.1          0.4
11. Men's Furnishings ....................... 589.3         618.8          5.0
12. Boys' Clothing and Furnishings .......... 489.4         470.9         -3.8
13. Jewelry ................................. 981.5         962.1         -2.0
14. Notions ................................. 767.3         794.3          3.5
15. Toilet Articles and Drugs ............... 947.6         967.1          2.1
16. Furniture and Bedding ................... 683.7         685.0          0.2
17. Floor Coverings ......................... 602.1         602.2          0.0
18. Housewares .............................. 825.5         792.6         -4.0
19. Major Appliances ........................ 238.3         235.0         -1.4
20. Radio and Television ..................... 71.6          65.7         -8.2
21. Recreation and Education [FN2] .......... 104.3          98.1         -5.9
22. Home Improvements [FN2] ................. 131.2         128.1         -2.4
23. Auto Accessories [FN2] .................. 107.5         106.5         -0.9
Groups 1 - 15: Soft Goods ................... 592.1         588.1         -0.7
Groups 16 - 20: Durable Goods ............... 464.9         449.3         -3.4
Groups 21 - 23: Misc. Goods [FN2] ........... 108.4         103.7         -4.3
  Store Total [FN3] ......................... 545.9         536.7         -1.7

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, food, liquor, tobacco, and
  contract departments.

DRAFTING INFORMATION

  The principal author of this revenue ruling is Richard C. Farley, Jr. of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Farley on (202) 622-4970 (not a toll-free call).

Rev. Rul. 99-31, 1999-37 I.R.B. 410.