Rev. Rul. 99-9, 1999-7 I.R.B. 14
Internal Revenue Service
Revenue Ruling
LIFO; PRICE INDEXES; DEPARTMENT STORES
Published: February 16, 1999
Section 472. - Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first- out inventories.
Section 832. - Insurance Company Taxable Income, 26 CFR 1.832-4: Gross income.
Section 846. - Discounted Unpaid Losses Defined, 26 CFR 1.846-1: Application of discount factors.
26 CFR 1.846-1: Application of discount factors.
Section 6311. - Payment of Tax by Commercially Acceptable Means, 26 CFR 301.6311-2T: Payment by credit card and debit card (temporary).
LIFO; price indexes; department stores. The December 1998 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, December 31, 1998.
The salvage discount factors are set forth for the 1998 accident year. These factors will be used for computing estimated salvage recoverable for purposes of section 832 of the Code.
The loss payment patterns and discount factors are set forth for the 1998 accident year. These factors will be used for computing discounted unpaid losses under section 846 of the Code.
The following Department Store Inventory Price Indexes for December 1998 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, December 31, 1998.
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 Dec
1997 Dec 1998 Percent
Change
from
Dec.1997
to
Dec
1998
[FN1]
1. Piece
Goods
522.7 546.8 4.6
2. Domestics and
Draperies
620.8 631.2 1.7
3. Women's and Children's
Shoes 661.6 660.9
-0.1
4. Men's
Shoes
894.5 905.3 1.2
5. Infants'
Wear
620.2 628.7 1.4
6. Women's
Underwear
548.7 559.6 2.0
7. Women's
Hosiery
297.0 304.1 2.4
8. Women's and
Girls' 541.1 536.4
-0.9
Accessories
9. Women's Outerwear and
Girls' 406.4 401.0
-1.3
Wear
10. Men's
Clothing 606.0 603.3
-0.4
11. Men's
Furnishings
598.6 591.9
-1.1
12. Boys' Clothing
and 505.4 493.7
-2.3
Furnishings
13. Jewelry
948.3 953.0 0.5
14. Notions
797.8 771.9
-3.2
15. Toilet Articles and
Drugs
922.4 939.4 1.8
16. Furniture and
Bedding
662.6 691.1 4.3
17. Floor
Coverings
581.1 602.5 3.7
18. Housewares 806.6 806.5 0.0
19. Major
Appliances 241.7 236.0
-2.4
20. Radio and
Television
73.9
69.6 -5.8
21. Recreation and
Education 108.6 101.6
-6.4
[FN2]
22. Home Improvements
[FN2]
133.4 130.6
-2.1
23. Auto Accessories
[FN2] 108.0 107.7
-0.3
Groups 1 - 15: Soft
Goods
594.5 595.0 0.1
Groups 16 - 20: Durable
Goods
460.9 458.0
-0.6
Groups 21 - 23: Misc. Goods
[FN2]
111.7 106.6
-4.6
Store Total
[FN3]
548.2 544.8
-0.6
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. 99-9, 1999-7 I.R.B. 14.