Internal Revenue Bulletin:  2004-17 

April 26, 2004 

Rev. Rul. 2004-42


Table of Contents

LIFO; price indexes; department stores. The February 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, February 29, 2004.

The following Department Store Inventory Price Indexes for February 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, February 29, 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 Feb. 2003 Feb. 2004 Percent Change from Feb. 2003 to Feb. 20041
1. Piece Goods 461.9 469.3 1.6
2. Domestics and Draperies 562.9 536.5 -4.7
3. Women’s and Children’s Shoes 647.0 609.9 -5.7
4. Men’s Shoes 861.9 850.4 -1.3
5. Infants’ Wear 596.6 583.8 -2.1
6. Women’s Underwear 525.6 506.7 -3.6
7. Women’s Hosiery 340.6 354.3 4.0
8. Women’s and Girls’ Accessories 551.3 556.6 1.0
9. Women’s Outerwear and Girls’ Wear 358.2 341.9 -4.6
10. Men’s Clothing 550.5 534.0 -3.0
11. Men’s Furnishings 569.2 572.3 0.5
12. Boys’ Clothing and Furnishings 454.8 436.6 -4.0
13. Jewelry 870.4 895.7 2.9
14. Notions 784.1 793.9 1.2
15. Toilet Articles and Drugs 969.5 984.6 1.6
16. Furniture and Bedding 626.9 624.2 -0.4
17. Floor Coverings 592.4 592.6 0.0
18. Housewares 736.7 715.2 -2.9
19. Major Appliances 219.7 206.8 -5.9
20. Radio and Television 46.9 43.3 -7.7
21. Recreation and Education2 84.0 81.6 -2.9
22. Home Improvements2 125.6 128.9 2.6
23. Automotive Accessories2 112.3 112.1 -0.2
         
Groups 1-15: Soft Goods 559.3 549.5 -1.8
Groups 16-20: Durable Goods 402.9 388.6 -3.5
Groups 21-23: Misc. Goods2 95.2 93.9 -1.4
       
  Store Total3 502.3 491.9 -2.1
         
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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