Internal Revenue Bulletin:  2004-25 

June 21, 2004 

Rev. Rul. 2004-61


Table of Contents

LIFO; price indexes; department stores. The April 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, April 30, 2004.

The following Department Store Inventory Price Indexes for April 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, April 30, 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 April 2003 April 2004 Percent Change from April 2003 to April 20041
1. Piece Goods 457.9 491.0 7.2
2. Domestics and Draperies 568.1 539.7 -5.0
3. Women’s and Children’s Shoes 646.4 654.5 1.3
4. Men’s Shoes 844.7 856.4 1.4
5. Infants’ Wear 597.8 586.1 -2.0
6. Women’s Underwear 517.2 493.2 -4.6
7. Women’s Hosiery 347.1 336.2 -3.1
8. Women’s and Girls’ Accessories 552.1 564.2 2.2
9. Women’s Outerwear and Girls’ Wear 385.7 389.2 0.9
10. Men’s Clothing 569.0 545.9 -4.1
11. Men’s Furnishings 589.8 592.7 0.5
12. Boys’ Clothing and Furnishings 465.5 459.4 -1.3
13. Jewelry 876.5 893.0 1.9
14. Notions 794.1 799.3 0.7
15. Toilet Articles and Drugs 982.5 987.5 0.5
16. Furniture and Bedding 627.7 618.0 -1.5
17. Floor Coverings 584.4 598.8 2.5
18. Housewares 730.3 715.3 -2.1
19. Major Appliances 215.3 201.8 -6.3
20. Radio and Television 46.4 42.7 -8.0
21. Recreation and Education2 83.7 81.2 -3.0
22. Home Improvements2 125.1 128.0 2.3
23. Automotive Accessories2 111.5 112.1 0.5
Groups 1-15: Soft Goods 573.8 572.0 -0.3
Groups 16-20: Durable Goods 399.0 385.6 -3.4
Groups 21-23: Misc. Goods2 94.8 93.6 -1.3
       
  Store Total3 510.0 504.8 -1.0
         
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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