Internal Revenue Bulletin:  2005-35 

August 29, 2005 

Rev. Rul. 2005-56


Table of Contents

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

The following Department Store Inventory Price Indexes for June 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, June 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 June 2004 June 2005 Percent Change from June 2004 to June 20051
1. Piece Goods 490.9 504.8 2.8
2. Domestics and Draperies 538.7 519.1 -3.6
3. Women’s and Children’s Shoes 631.8 650.4 2.9
4. Men’s Shoes 854.5 878.2 2.8
5. Infants’ Wear 567.3 559.9 -1.3
6. Women’s Underwear 508.4 541.4 6.5
7. Women’s Hosiery 329.9 340.0 3.1
8. Women’s and Girls’ Accessories 581.5 588.9 1.3
9. Women’s Outerwear and Girls’ Wear 361.9 347.5 -4.0
10. Men’s Clothing 540.3 536.9 -0.6
11. Men’s Furnishings 578.3 562.8 -2.7
12. Boys’ Clothing and Furnishings 431.3 413.6 -4.1
13. Jewelry 897.4 872.3 -2.8
14. Notions 791.9 810.4 2.3
15. Toilet Articles and Drugs 998.9 997.0 -0.2
16. Furniture and Bedding 624.2 598.7 -4.1
17. Floor Coverings 592.9 604.6 2.0
18. Housewares 712.6 711.9 -0.1
19. Major Appliances 200.4 204.3 1.9
20. Radio and Television 41.9 39.0 -6.9
21. Recreation and Education2 80.7 78.5 -2.7
22. Home Improvements2 129.3 137.8 6.6
23. Automotive Accessories2 112.4 114.6 2.0
         
Groups 1-15: Soft Goods 559.3 552.0 -1.3
Groups 16-20: Durable Goods 384.1 379.8 -1.1
Groups 21-23: Misc. Goods2 93.4 93.4 0.0
       
  Store Total3 496.5 490.8 -1.1
         
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).


More Internal Revenue Bulletins