Internal Revenue Service
Revenue Ruling
TaxLinks.com
smThe December 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, December 31, 1999.
Code Sec. 472;
The following Department Store Inventory Price Indexes for August 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, December 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, foods, 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 Dec. Dec. Dec. 1998 to Groups 1998 1999 Dec. 1999 /1/ --------------------------------------------------------------------- 1. Piece Goods 546.8 512.9 -6.2 2. Domestics and Draperies 631.2 619.5 -1.9 3. Women's and Children's Shoes 660.9 631.0 -4.5 4. Men's Shoes 905.3 887.4 -2.0 5. Infants' Wear 628.7 650.0 3.4 6. Women's Underwear 559.6 561.6 0.4 7. Women's Hosiery 304.1 325.0 6.9 8. Women's and Girls' Accessories 536.4 526.2 -1.9 9. Women's Outerwear and Girls' Wear 401.0 393.5 -1.9 10. Men's Clothing 603.3 610.1 1.1 11. Men's Furnishings 591.9 626.0 5.8 12. Boys' Clothing and Furnishings 493.7 506.4 2.6 13. Jewelry 953.0 924.8 -3.0 14. Notions 771.9 768.3 -0.5 15. Toilet Articles and Drugs 939.4 981.7 4.5 16. Furniture and Bedding 691.1 688.5 -0.4 17. Floor Coverings 602.5 602.7 0.0 18. Housewares 806.5 786.9 -2.4 19. Major Appliances 236.0 234.9 -0.5 20. Radio and Television 69.6 63.2 -9.2 21. Recreation and Education /2/ 101.6 95.3 -6.2 22. Home Improvements /2/ 130.6 129.3 -1.0 23. Auto Accessories /2/ 107.7 107.3 -0.4 Groups 1 - 15: Soft Goods 595.0 596.7 0.3 Groups 16 - 20: Durable Goods 458.0 445.6 -2.7 Groups 21 - 23: Misc. Goods /2/ 106.6 102.1 -4.2 Store Total /3/ 544.8 540.2 -0.8 _____________________________________________________________________ /1/ Absence of a minus sign before percentage change in this column signifies price increase. /2/ Indexes on a January 1986 = 100 base. /3/ The store total index covers all departments, including some not listed separately, except for the following: candy, foods, liquor, tobacco, and contract departments.
The principal author of this revenue ruling is Alan J. Tomsic of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling contact Mr. Tomsic on (202) 622-4970 (not a toll-free call).