Internal Revenue Bulletin:  2004-44 

November 1, 2004 

Rev. Rul. 2004-101


Table of Contents

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

The following Department Store Inventory Price Indexes for August 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, August 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 Aug. 2003 Aug. 2004 Percent Change from Aug. 2003 to Aug. 20041
1. Piece Goods 488.9 513.2 5.0
2. Domestics and Draperies 568.7 525.7 -7.6
3. Women’s and Children’s Shoes 631.4 623.7 -1.2
4. Men’s Shoes 838.8 838.6 0.0
5. Infants’ Wear 589.1 561.1 -4.8
6. Women’s Underwear 510.7 502.4 -1.6
7. Women’s Hosiery 347.8 337.5 -3.0
8. Women’s and Girls’ Accessories 551.0 557.2 1.1
9. Women’s Outerwear and Girls’ Wear 350.2 341.4 -2.5
10. Men’s Clothing 528.7 524.4 -0.8
11. Men’s Furnishings 565.6 564.3 -0.2
12. Boys’ Clothing and Furnishings 423.3 414.5 -2.1
13. Jewelry 880.6 902.5 2.5
14. Notions 787.1 794.8 1.0
15. Toilet Articles and Drugs 979.8 992.7 1.3
16. Furniture and Bedding 619.8 607.8 -1.9
17. Floor Coverings 588.7 581.5 -1.2
18. Housewares 720.4 709.6 -1.5
19. Major Appliances 209.7 196.9 -6.1
20. Radio and Television 45.0 41.2 -8.4
21. Recreation and Education2 82.3 80.1 -2.7
22. Home Improvements2 124.2 129.2 4.0
23. Automotive Accessories2 111.7 112.8 1.0
         
Groups 1-15: Soft Goods 553.5 546.4 -1.3
Groups 16-20: Durable Goods 392.1 379.2 -3.3
Groups 21-23: Misc. Goods2 93.8 93.1 -0.7
       
  Store Total3 495.2 487.1 -1.6
         
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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