Internal Revenue Bulletin:  2004-32 

August 9, 2004 

Rev. Rul. 2004-81


Table of Contents

LIFO; price indexes; department stores. The May 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, May 31, 2004.

The following Department Store Inventory Price Indexes for May 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, May 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 May 2003 May 2004 Percent Change from May 2003 to May 20041
1. Piece Goods 456.3 483.5 6.0
2. Domestics and Draperies 557.6 542.2 -2.8
3. Women’s and Children’s Shoes 637.0 645.0 1.3
4. Men’s Shoes 855.8 868.4 1.5
5. Infants’ Wear 599.6 575.6 -4.0
6. Women’s Underwear 519.8 512.2 -1.5
7. Women’s Hosiery 349.5 338.2 -3.2
8. Women’s and Girls’ Accessories 550.2 567.5 3.1
9. Women’s Outerwear and Girls’ Wear 374.5 377.2 0.7
10. Men’s Clothing 562.3 548.4 -2.5
11. Men’s Furnishings 587.2 594.3 1.2
12. Boys’ Clothing and Furnishings 463.5 445.2 -3.9
13. Jewelry 877.9 905.2 3.1
14. Notions 789.7 797.5 1.0
15. Toilet Articles and Drugs 979.7 1001.4 2.2
16. Furniture and Bedding 620.2 613.8 -1.0
17. Floor Coverings 578.9 587.9 1.6
18. Housewares 730.9 714.8 -2.2
19. Major Appliances 213.7 201.6 -5.7
20. Radio and Television 45.9 42.4 -7.6
21. Recreation and Education2 83.4 80.8 -3.1
22. Home Improvements2 126.1 129.1 2.4
23. Automotive Accessories2 111.6 112.1 0.4
       
Groups 1-15: Soft Goods 568.1 570.1 0.4
Groups 16-20: Durable Goods 397.1 384.2 -3.2
Groups 21-23: Misc. Goods2 94.7 93.4 -1.4
       
  Store Total3 506.0 503.2 -0.6
       
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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