Internal Revenue Bulletin:  2005-44 

October 31, 2005 

Rev. Rul. 2005-69


Table of Contents

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

The following Department Store Inventory Price Indexes for August 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, August 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 Aug. 2004 Aug. 2005 Percent Change from Aug. 2004 to Aug. 20051
1. Piece Goods 513.2 486.8 -5.1
2. Domestics and Draperies 525.7 512.2 -2.6
3. Women’s and Children’s Shoes 623.7 661.5 6.1
4. Men’s Shoes 838.6 875.1 4.4
5. Infants’ Wear 561.1 554.0 -1.3
6. Women’s Underwear 502.4 542.8 8.0
7. Women’s Hosiery 337.5 339.1 0.5
8. Women’s and Girls’ Accessories 557.2 585.4 5.1
9. Women’s Outerwear and Girls’ Wear 341.4 331.2 -3.0
10. Men’s Clothing 524.4 527.1 0.5
11. Men’s Furnishings 564.3 557.0 -1.3
12. Boys’ Clothing and Furnishings 414.5 384.1 -7.3
13. Jewelry 902.5 888.5 -1.6
14. Notions 794.8 810.5 2.0
15. Toilet Articles and Drugs 992.7 998.0 0.5
16. Furniture and Bedding 607.8 598.5 -1.5
17. Floor Coverings 581.5 614.0 5.6
18. Housewares 709.6 708.6 -0.1
19. Major Appliances 196.9 203.9 3.6
20. Radio and Television 41.2 38.7 -6.1
21. Recreation and Education2 80.1 77.3 -3.5
22. Home Improvements2 129.2 136.0 5.3
23. Automotive Accessories2 112.8 115.9 2.7
         
Groups 1-15: Soft Goods 546.4 544.8 -0.3
Groups 16-20: Durable Goods 379.2 378.6 -0.2
Groups 21-23: Misc. Goods2 93.1 92.6 -0.5
       
  Store Total3 487.1 485.7 -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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