Internal Revenue Bulletin:  2005-9 

February 28, 2005 

Rev. Rul. 2005-12


Table of Contents

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

The following Department Store Inventory Price Indexes for December 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, December 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 Dec. 2003 Dec. 2004 Percent Change from Dec. 2003 to Dec. 20041
1. Piece Goods 473.7 495.2 4.5
2. Domestics and Draperies 543.9 527.4 -3.0
3. Women’s and Children’s Shoes 629.7 650.7 3.3
4. Men’s Shoes 847.8 841.5 -0.7
5. Infants’ Wear 586.4 577.4 -1.5
6. Women’s Underwear 509.6 517.2 1.5
7. Women’s Hosiery 344.1 339.2 -1.4
8. Women’s and Girls’ Accessories 551.3 565.6 2.6
9. Women’s Outerwear and Girls’ Wear 362.7 352.5 -2.8
10. Men’s Clothing 535.1 535.8 0.1
11. Men’s Furnishings 583.4 569.9 -2.3
12. Boys’ Clothing and Furnishings 429.0 414.2 -3.4
13. Jewelry 848.0 866.2 2.1
14. Notions 799.6 792.2 -0.9
15. Toilet Articles and Drugs 976.5 992.1 1.6
16. Furniture and Bedding 612.9 602.0 -1.8
17. Floor Coverings 595.1 592.5 -0.4
18. Housewares 710.6 708.0 -0.4
19. Major Appliances 206.8 199.9 -3.3
20. Radio and Television 43.8 40.3 -8.0
21. Recreation and Education2 81.5 78.3 -3.9
22. Home Improvements2 125.4 131.7 5.0
23. Automotive Accessories2 112.1 112.9 0.7
         
Groups 1-15: Soft Goods 555.8 552.5 -0.6
Groups 16-20: Durable Goods 386.8 378.5 -2.1
Groups 21-23: Misc. Goods2 93.5 92.2 -1.4
       
  Store Total3 495.1 490.1 -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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