The January 2000 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, January 31, 2000.

LIFO; price indexes; department stores. The January 2000 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, January 31, 2000.

The following Department Store Inventory Price Indexes for January 2000 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, January 31, 2000.

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
                                      Jan.     Jan.      Jan. 1999 to
               Groups                 1999     2000     Jan. 2000 /1/
---------------------------------------------------------------------
1. Piece Goods                       507.3    493.8        -2.7
2. Domestics and Draperies           643.1    622.0        -3.3
3. Women's and Children's Shoes      640.4    613.3        -4.2
4. Men's Shoes                       894.0    887.2        -0.8
5. Infants' Wear                     628.6    650.8         3.5
6. Women's Underwear                 560.7    571.4         1.9
7. Women's Hosiery                   316.2    327.6         3.6
8. Women's and Girls' Accessories    535.4    530.3        -1.0
9. Women's Outerwear and Girls'
    Wear                              376.9    369.1        -2.1
10. Men's Clothing                    603.8    612.9         1.5
11. Men's Furnishings                 585.2    618.0         5.6
12. Boys' Clothing and Furnishings    482.1    497.1         3.1
13. Jewelry                           965.3    962.0        -0.3
14. Notions                           729.7    764.5         4.8
15. Toilet Articles and Drugs         946.8    970.9         2.5
16. Furniture and Bedding             678.4    697.0         2.7
17. Floor Coverings                   602.4    603.2         0.1
18. Housewares                        813.6    789.9        -2.9
19. Major Appliances                  237.7    233.3        -1.9
20. Radio and Television               69.6     62.7        -9.9
21. Recreation and Education /2/      100.7     95.2        -5.5
22. Home Improvements /2/             130.3    129.8        -0.4
23. Auto Accessories /2/              107.8    107.6        -0.2
Groups  1 - 15: Soft Goods            586.4    588.6         0.4
Groups 16 - 20: Durable Goods         459.0    446.2        -2.8
Groups 21 - 23: Misc. Goods /2/       106.0    102.2        -3.6
     Store Total /3/                  539.4    535.4        -0.7
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     /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).