Internal Revenue Service
Revenue Ruling
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smRev. Rul. 99-46, 1999-45 I.R.B. 557
Code Sec. 472
26 CFR 1.472-1: Last-in, first-out inventories.
LIFO; price indexes; department stores. The September 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,September 30, 1999.
REV. RUL. 99-46
The following Department Store Inventory Price Indexes for September 1999 were issued by the Bureau of Labor Statistics. The indexes are accepted by the Internal Revenue Service, under section 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, 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)
Percent
Change from
Sept. Sept. Sept. 1998 to
Groups
1998 1999 Sept. 1999 [fn1]
------
----- ----- --------------
1. Piece Goods
542.3 543.6 0.2
2. Domestics and Draperies
634.0 629.3 -0.7
3. Women's and Children's Shoes
664.9 645.4 -2.9
4. Men's Shoes
915.1 883.1 -3.5
5. Infants' Wear
621.4 633.6 2.0
6. Women's Underwear
569.3 566.1 -0.6
7. Women's Hosiery
308.7 326.7 5.8
8. Women's and Girls' Accessories
545.7 536.2 -1.7
9. Women's Outerwear and Girls' Wear 419.3 408.9 -2.5
10. Men's Clothing
614.9 619.3 0.7
11. Men's Furnishings
595.5 618.4 3.8
12. Boys' Clothing and Furnishings
511.6 498.5 -2.6
13. Jewelry
973.7 960.4 -1.4
14. Notions
754.8 767.0 1.6
15. Toilet Articles and Drugs
939.8 982.5 4.5
16. Furniture and Bedding
673.8 696.6 3.4
17. Floor Coverings
602.1 602.8 0.1
18. Housewares
807.8 796.1 -1.4
19. Major Appliances
236.9 235.7 -0.5
20. Radio and Television
71.0 64.6 -9.0
21. Recreation and Education [fn2]
103.2 96.4 -6.6
22. Home Improvements [fn2]
129.9 127.8 -1.6
23. Auto Accessories [fn2]
107.5 107.1 -0.4
Groups 1-15: Soft Goods
605.4 605.2 0.0
Groups 16-20: Durable Goods
458.1 450.6 -1.6
Groups 21-23: Misc. Goods [fn2]
107.6 102.7 -4.6
Store Total [fn3]
551.9 547.0 -0.9
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[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. 99-46, 1999-45 I.R.B. 557