Internal Revenue Service
Revenue Ruling
TaxLinks.com
smThe November 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, November 30, 1999.
Code Sec. 472;
26 CFR 1.167(e)-1: Change in method
Is a change in the method of computing depreciation for property subject to section 168 of the Code (MACRS property) (that is acquired in a section 1031 like-kind exchange or section 1033 involuntary conversion a change in method of accounting? See Notice 2000-4, page 313.
What procedures apply for certain corporations to obtain automatic approval to change their annual accounting periods under section 442 of the Code? See Rev. Proc. 2000-11, page 309.
Is a change in the method of computing depreciation for property subject to section 168 of the Code (MACRS property) that is acquired in a section 1031 like-kind exchange or section 1033 involuntary conversion a change in method of accounting? See Notice 2000-4, page 313.
LIFO; price indexes; department stores. The November 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, November 30, 1999.
The following Department Store Inventory Price Indexes for November 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, November 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
Nov. Nov. Nov. 1998 to
Groups 1998 1999 Nov. 1999 /1/
---------------------------------------------------------------------
1. Piece Goods 544.5 514.3 -5.5
2. Domestics and Draperies 635.9 622.0 -2.2
3. Women's and Children's Shoes 685.8 651.4 -5.0
4. Men's Shoes 916.9 875.1 -4.6
5. Infants' Wear 638.3 647.6 1.5
6. Women's Underwear 570.4 571.9 0.3
7. Women's Hosiery 308.4 328.9 6.6
8. Women's and Girls' Accessories 546.5 539.6 -1.3
9. Women's Outerwear and Girls' Wear 417.0 410.3 -1.6
10. Men's Clothing 619.5 617.4 -0.3
11. Men's Furnishings 608.4 627.6 3.2
12. Boys' Clothing and Furnishings 519.0 510.2 -1.7
13. Jewelry 977.1 950.5 -2.7
14. Notions 766.3 764.6 -0.2
15. Toilet Articles and Drugs 945.3 983.6 4.1
16. Furniture and Bedding 686.8 689.7 0.4
17. Floor Coverings 602.2 602.1 0.0
18. Housewares 811.3 789.3 -2.7
19. Major Appliances 238.9 235.5 -1.4
20. Radio and Television 70.1 63.5 -9.4
21. Recreation and Education /2/ 102.2 96.1 -6.0
22. Home Improvements /2/ 129.6 129.2 -0.3
23. Auto Accessories /2/ 107.9 107.6 -0.3
Groups 1 - 15: Soft Goods 610.0 606.9 -0.5
Groups 16 - 20: Durable Goods 460.4 446.9 -2.9
Groups 21 - 23: Misc. Goods /2/ 106.9 102.7 -3.9
Store Total /3/ 554.9 547.2 -1.4
/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, food, liquor,
tobacco, and contract departments.
DRAFTING INFORMATION
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).