Rev. Rul. 2000-47, 2000-37 IRB 264, IRC Sec(s). 472

Inventories.

Headnote:

The July 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, July 31, 2000.

Full Text:

The following Department Store Inventory Price Indexes for July 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, July 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, 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
                                      July     July     July 1999 to
               Groups                 1999     2000     July 2000 /1/
---------------------------------------------------------------------
 1. Piece Goods                       551.4    519.6        -5.8
 2. Domestics and Draperies           632.6    630.3        -0.4
 3. Women's and Children's Shoes      635.4    613.6        -3.4
 4. Men's Shoes                       874.8    896.4         2.5
 5. Infants' Wear                     615.1    629.5         2.3
 6. Women's Underwear                 560.8    561.4         0.1
 7. Women's Hosiery                   321.3    335.1         4.3
 8. Women's and Girls' Accessories    532.8    528.2        -0.9
 9. Women's Outerwear and Girls'
    Wear                              367.0    364.0        -0.8
10. Men's Clothing                    616.1    602.8        -2.2
11. Men's Furnishings                 618.8    608.8        -1.6
12. Boys' Clothing and Furnishings    470.9    478.6         1.6
13. Jewelry                           962.1    945.5        -1.7
14. Notions                           794.3    780.8        -1.7
15. Toilet Articles and Drugs         967.1    965.7        -0.1
16. Furniture and Bedding             685.0    689.2         0.6
17. Floor Coverings                   602.2    609.8         1.3
18. Housewares                        792.6    783.5        -1.1
19. Major Appliances                  235.0    232.9        -0.9
20. Radio and Television               65.7     59.1       -10.0
21. Recreation and Education /2/       98.1     92.6        -5.6
22. Home Improvements /2/             128.1    127.9        -0.2
23. Auto Accessories /2/              106.5    106.5         0.0
Groups  1 - 15: Soft Goods            588.1    583.3        -0.8
Groups 16 - 20: Durable Goods         449.3    439.9        -2.1
Groups 21 - 23: Misc. Goods /2/       103.7    100.0        -3.6
     Store Total /3/                  536.7    529.2        -1.4
---------------------------------------------------------------------
     /1/ Absence of a minus sign before percentage change in this
column signifies a 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 at (202) 622-4970 (not a toll-free call).