Internal Revenue Bulletin:  2004-37 

September 13, 2004 

Rev. Rul. 2004-93


Table of Contents

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

The following Department Store Inventory Price Indexes for July 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, July 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 July 2003 July 2004 Percent Change from July 2003 to July 20041
1. Piece Goods 487.0 507.8 4.3
2. Domestics and Draperies 570.0 525.0 -7.9
3. Women’s and Children’s Shoes 613.9 608.5 -0.9
4. Men’s Shoes 831.2 831.7 0.1
5. Infants’ Wear 573.3 560.5 -2.2
6. Women’s Underwear 509.0 508.0 -0.2
7. Women’s Hosiery 346.9 330.4 -4.8
8. Women’s and Girls’ Accessories 537.8 565.8 5.2
9. Women’s Outerwear and Girls’ Wear 342.8 335.9 -2.0
10. Men’s Clothing 533.3 532.7 -0.1
11. Men’s Furnishings 562.7 567.0 0.8
12. Boys’ Clothing and Furnishings 424.4 420.9 -0.8
13. Jewelry 882.3 907.8 2.9
14. Notions 792.1 798.6 0.8
15. Toilet Articles and Drugs 992.0 993.3 0.1
16. Furniture and Bedding 619.9 616.3 -0.6
17. Floor Coverings 587.3 587.7 0.1
18. Housewares 722.5 712.1 -1.4
19. Major Appliances 213.3 199.6 -6.4
20. Radio and Television 45.3 41.6 -8.2
21. Recreation and Education2 82.8 80.3 -3.0
22. Home Improvements2 123.7 129.8 4.9
23. Automotive Accessories2 111.4 112.7 1.2
       
Groups 1-15: Soft Goods 549.6 545.1 -0.8
Groups 16-20: Durable Goods 394.3 382.3 -3.0
Groups 21-23: Misc. Goods2 94.0 93.3 -0.7
       
  Store Total3 493.4 487.2 -1.3
       
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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