Internal Revenue Bulletin:  2005-22 

May 31, 2005 

Rev. Rul. 2005-34


Table of Contents

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

The following Department Store Inventory Price Indexes for March 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, March 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 Mar 2004 Mar 2005 Percent Change from Mar 2004 to Mar 20051
1. Piece Goods 491.8 465.1 -5.4
2. Domestics and Draperies 537.6 536.8 -0.1
3. Women’s and Children’s Shoes 643.4 685.9 6.6
4. Men’s Shoes 840.1 849.9 1.2
5. Infants’ Wear 593.2 571.0 -3.7
6. Women’s Underwear 493.6 547.7 11.0
7. Women’s Hosiery 334.6 349.7 4.5
8. Women’s and Girls’ Accessories 561.7 607.0 8.1
9. Women’s Outerwear and Girls’ Wear 379.7 375.9 -1.0
10. Men’s Clothing 539.2 564.8 4.7
11. Men’s Furnishings 580.7 587.0 1.1
12. Boys’ Clothing and Furnishings 451.9 445.9 -1.3
13. Jewelry 890.0 882.1 -0.9
14. Notions 798.5 777.7 -2.6
15. Toilet Articles and Drugs 982.7 991.4 0.9
16. Furniture and Bedding 620.3 604.2 -2.6
17. Floor Coverings 596.8 602.4 0.9
18. Housewares 714.4 712.2 -0.3
19. Major Appliances 205.2 205.0 -0.1
20. Radio and Television 43.1 39.5 -8.4
21. Recreation and Education2 81.6 79.6 -2.5
22. Home Improvements2 127.8 137.3 7.4
23. Automotive Accessories2 112.3 114.4 1.9
         
Groups 1-15: Soft Goods 564.9 572.2 1.3
Groups 16-20: Durable Goods 387.2 381.1 -1.6
Groups 21-23: Misc. Goods2 93.8 94.0 0.2
       
  Store Total3 501.0 504.0 0.6
         
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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