Internal Revenue Service
Revenue Ruling
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smRev. Rul. 2003-9, 2003-4 I.R.B. 303
Internal Revenue Service (I.R.S.)
Revenue Ruling
LIFO; PRICE INDEXES; DEPARTMENT STORES
Published: January 27, 2003
Section 472.--Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first-out inventories.
LIFO; price indexes; department stores. The November 2002 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, 2002.
The following Department Store Inventory Price Indexes for November 2002 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, November 30, 2002.
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 Nov. 2001 Nov. 2002 Percent
Change
from Nov.
2001 to
Nov. 2002
[FN1]
-------------------------------------------------------------------------------
1. Piece Goods ........................
492.1 473.3 -3.8
2. Domestics and Draperies ............
597.2 571.3 -4.3
3. Women's and Children's Shoes .......
659.0 652.4 -1.0
4. Men's Shoes ........................
877.2 899.2 2.5
5. Infants' Wear ......................
641.4 622.7 -2.9
6. Women's Underwear ..................
574.5 551.8 -4.0
7. Women's Hosiery ....................
355.0 345.3 -2.7
8. Women's and Girls'
Accessories ......................
562.2 559.1 -0.6
9. Women's Outerwear and Girls'
Wear .............................
385.3 373.5 -3.1
10. Men's Clothing .....................
582.7 572.1 -1.8
11. Men's Furnishings ..................
625.4 603.6 -3.5
12. Boys' Clothing and
Furnishings ......................
490.1 461.3 -5.9
13. Jewelry ............................
907.3 871.7 -3.9
14. Notions ............................
806.5 793.1 -1.7
15. Toilet Articles and Drugs ..........
979.8 972.5 -0.7
16. Furniture and Bedding ..............
629.5 622.2 -1.2
17. Floor Coverings ....................
627.3 600.6 -4.3
18. Housewares .........................
762.5 738.6 -3.1
19. Major Appliances ...................
226.5 221.6 -2.2
20. Radio and Television ................
52.3 47.5 -9.2
21. Recreation and Education
[FN2] .............................
88.4 84.6 -4.3
22. Home Improvements [FN2] ............
124.2 125.2 0.8
23. Auto Accessories [FN2] .............
110.4 111.7 1.2
Groups 1 - 15: Soft Goods .....................
592.1 575.9 -2.7
Groups 16 - 20: Durable Goods .................
418.8 404.5 -3.4
Groups 21 - 23: Misc. Goods [FN2] ..............
97.6 95.4 -2.3
Store Total [FN3] ..................
528.0 513.0 -2.8
FN1. Absence of a minus sign before the percentage change in this column
signifies a 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 Michael Burkom of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Burkom at (202) 622- 7718 (not a toll-free call).
Rev. Rul. 2003-9, 2003-4 I.R.B. 303