Internal Revenue Bulletin:  2004-4 

January 26, 2004 

Rev. Rul. 2004-7


Table of Contents

LIFO; price indexes; department stores. The November 2003 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, 2003.

The following Department Store Inventory Price Indexes for November 2003 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, 2003.

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. 2002 Nov. 2003 Percent Change from Nov. 2002 to Nov. 2003¹
1. Piece Goods 473.3 480.5 1.5
2. Domestics and Draperies 571.3 548.6 -4.0
3. Women’s and Children’s Shoes 652.4 649.8 -0.4
4. Men’s Shoes 899.2 845.3 -6.0
5. Infants’ Wear 622.7 598.3 -3.9
6. Women’s Underwear 551.8 514.2 -6.8
7. Women’s Hosiery 345.3 343.3 -0.6
8. Women’s and Girls’ Accessories 559.1 555.8 -0.6
9. Women’s Outerwear and Girls’ Wear 373.5 375.7 0.6
10. Men’s Clothing 572.1 549.5 -4.0
11. Men’s Furnishings 603.6 598.3 -0.9
12. Boys’ Clothing and Furnishings 461.3 451.0 -2.2
13. Jewelry 871.7 866.8 -0.6
14. Notions 793.1 797.2 0.5
15. Toilet Articles and Drugs 972.5 976.2 0.4
16. Furniture and Bedding 622.2 612.9 -1.5
17. Floor Coverings 600.6 594.5 -1.0
18. Housewares 738.6 712.6 -3.5
19. Major Appliances 221.6 210.0 -5.2
20. Radio and Television 47.5 44.3 -6.7
21. Recreation and Education2 84.6 82.2 -2.8
22. Home Improvements2 125.2 124.9 -0.2
23. Automotive Accessories2 111.7 112.0 0.3
         
Groups 1-15: Soft Goods 575.9 567.7 -1.4
Groups 16-20: Durable Goods 404.5 388.9 -3.9
Groups 21-23: Misc. Goods2 95.4 93.9 -1.6
       
  Store Total3 513.0 503.1 -1.9
         
1Absence of a minus sign before the percentage change in this column signifies a price increase.
2Indexes on a January 1986 = 100 base.
3The 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) 622-7924 (not a toll-free call).


More Internal Revenue Bulletins