Internal Revenue Bulletin:  2005-26 

June 27, 2005 

Rev. Rul. 2005-37


Table of Contents

LIFO; price indexes; department stores. The April 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, April 30, 2005.

The following Department Store Inventory Price Indexes for April 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, April 30, 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 Apr 2004 Apr 2005 Percent Change from Apr 2004 to Apr 20051
1. Piece Goods 491.0 469.8 -4.3
2. Domestics and Draperies 539.7 539.1 -0.1
3. Women’s and Children’s Shoes 654.5 679.7 3.9
4. Men’s Shoes 856.4 876.6 2.4
5. Infants’ Wear 586.1 582.7 -0.6
6. Women’s Underwear 493.2 545.2 10.5
7. Women’s Hosiery 336.2 342.9 2.0
8. Women’s and Girls’ Accessories 564.2 599.6 6.3
9. Women’s Outerwear and Girls’ Wear 389.2 376.2 -3.3
10. Men’s Clothing 545.9 565.6 3.6
11. Men’s Furnishings 592.7 586.6 -1.0
12. Boys’ Clothing and Furnishings 459.4 440.4 -4.1
13. Jewelry 893.0 879.9 -1.5
14. Notions 799.3 779.0 -2.5
15. Toilet Articles and Drugs 987.5 994.4 0.7
16. Furniture and Bedding 618.0 604.2 -2.2
17. Floor Coverings 598.8 601.0 0.4
18. Housewares 715.3 714.1 -0.2
19. Major Appliances 201.8 202.8 0.5
20. Radio and Television 42.7 39.5 -7.5
21. Recreation and Education2 81.2 78.3 -3.6
22. Home Improvements2 128.0 136.4 6.6
23. Automotive Accessories2 112.1 114.4 2.1
         
Groups 1-15: Soft Goods 572.0 572.4 0.1
Groups 16-20: Durable Goods 385.6 380.8 -1.2
Groups 21-23: Misc. Goods2 93.6 93.0 -0.6
       
  Store Total3 504.8 503.5 -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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