Internal Revenue Bulletin:  2005-5 

January 31, 2005 

Rev. Rul. 2005-5


Table of Contents

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

The following Department Store Inventory Price Indexes for November 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, November 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 Nov. 2003 Nov. 2004 Percent Change from Nov. 2003 to Nov. 20041
1. Piece Goods 480.5 507.8 5.7
2. Domestics and Draperies 548.6 535.3 -2.4
3. Women’s and Children’s Shoes 649.8 656.6 1.0
4. Men’s Shoes 845.3 842.9 -0.3
5. Infants’ Wear 598.3 584.3 -2.3
6. Women’s Underwear 514.2 518.5 0.8
7. Women’s Hosiery 343.3 342.0 -0.4
8. Women’s and Girls’ Accessories 555.8 583.1 4.9
9. Women’s Outerwear and Girls’ Wear 375.7 376.8 0.3
10. Men’s Clothing 549.5 542.5 -1.3
11. Men’s Furnishings 598.3 581.5 -2.8
12. Boys’ Clothing and Furnishings 451.0 430.1 -4.6
13. Jewelry 866.8 879.0 1.4
14. Notions 797.2 789.1 -1.0
15. Toilet Articles and Drugs 976.2 998.6 2.3
16. Furniture and Bedding 612.9 601.7 -1.8
17. Floor Coverings 594.5 590.2 -0.7
18. Housewares 712.6 711.8 -0.1
19. Major Appliances 210.0 201.6 -4.0
20. Radio and Television 44.3 40.7 -8.1
21. Recreation and Education2 82.2 79.5 -3.3
22. Home Improvements2 124.9 130.6 4.6
23. Automotive Accessories2 112.0 113.1 1.0
         
Groups 1-15: Soft Goods 567.7 566.4 -0.2
Groups 16-20: Durable Goods 388.9 380.5 -2.2
Groups 21-23: Misc. Goods2 93.9 92.9 -1.1
       
  Store Total3 503.1 499.6 -0.7
         
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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