Internal Revenue Bulletin:  2004-13 

March 29, 2004 

Rev. Rul. 2004-35


Table of Contents

LIFO; price indexes; department stores. The January 2004 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, 2004.

The following Department Store Inventory Price Indexes for January 2004 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, January 31, 2004.

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 Jan. 2003 Jan. 2004 Percent Change from Jan. 2003 to Jan. 20041
1. Piece Goods 465.2 468.0 0.6
2. Domestics and Draperies 566.8 543.5 -4.1
3. Women’s and Children’s Shoes 648.4 599.6 -7.5
4. Men’s Shoes 876.7 849.6 -3.1
5. Infants’ Wear 593.8 578.1 -2.6
6. Women’s Underwear 524.0 504.8 -3.7
7. Women’s Hosiery 339.8 350.5 3.1
8. Women’s and Girls’ Accessories 549.7 544.8 -0.9
9. Women’s Outerwear and Girls’ Wear 338.3 335.6 -0.8
10. Men’s Clothing 550.9 530.7 -3.7
11. Men’s Furnishings 567.3 574.2 1.2
12. Boys’ Clothing and Furnishings 427.1 416.3 -2.5
13. Jewelry 866.4 888.4 2.5
14. Notions 782.8 788.2 0.7
15. Toilet Articles and Drugs 971.1 981.0 1.0
16. Furniture and Bedding 626.3 617.5 -1.4
17. Floor Coverings 593.0 595.4 0.4
18. Housewares 736.4 710.7 -3.5
19. Major Appliances 220.0 205.5 -6.6
20. Radio and Television 47.1 43.5 -7.6
21. Recreation and Education2 84.2 81.3 -3.4
22. Home Improvements2 125.5 127.7 1.8
23. Automotive Accessories2 112.0 112.3 0.3
         
Groups 1-15: Soft Goods 552.0 545.3 -1.2
Groups 16-20: Durable Goods 403.0 386.5 -4.1
Groups 21-23: Misc. Goods2 95.3 93.6 -1.8
       
  Store Total3 497.8 488.6 -1.8
         
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).


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