Internal Revenue Bulletin:  2005-13 

March 28, 2005 

Rev. Rul. 2005-22


Table of Contents

LIFO; price indexes; department stores. The January 2005 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, January 31, 2005.

The following Department Store Inventory Price Indexes for January 2005 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, January 31, 2005.

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 Jan. 2004 Jan. 2005 Percent Change from Jan. 2004 to Jan. 20051
1. Piece Goods 468.0 494.0 5.6
2. Domestics and Draperies 543.5 536.5 -1.3
3. Women’s and Children’s Shoes 599.6 643.3 7.3
4. Men’s Shoes 849.6 840.6 -1.1
5. Infants’ Wear 578.1 578.4 0.1
6. Women’s Underwear 504.8 515.2 2.1
7. Women’s Hosiery 350.5 338.9 -3.3
8. Women’s and Girls’ Accessories 544.8 560.4 2.9
9. Women’s Outerwear and Girls’ Wear 335.6 333.3 -0.7
10. Men’s Clothing 530.7 534.9 0.8
11. Men’s Furnishings 574.2 561.9 -2.1
12. Boys’ Clothing and Furnishings 416.3 414.9 -0.3
13. Jewelry 888.4 879.0 -1.1
14. Notions 788.2 784.4 -0.5
15. Toilet Articles and Drugs 981.0 994.7 1.4
16. Furniture and Bedding 617.5 604.9 -2.0
17. Floor Coverings 595.4 598.2 0.5
18. Housewares 710.7 711.8 0.2
19. Major Appliances 205.5 202.6 -1.4
20. Radio and Television 43.5 40.0 -8.0
21. Recreation and Education2 81.3 78.3 -3.7
22. Home Improvements2 127.7 135.6 6.2
23. Automotive Accessories2 112.3 113.8 1.3
         
Groups 1-15: Soft Goods 545.3 546.2 0.2
Groups 16-20: Durable Goods 386.5 380.7 -1.5
Groups 21-23: Misc. Goods2 93.6 92.8 -0.9
       
  Store Total3 488.6 487.2 -0.3
         
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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