Internal Revenue Bulletin:  2005-48 

November 28, 2005 

Rev. Rul. 2005-73


Table of Contents

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

The following Department Store Inventory Price Indexes for September 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, September 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 Sep. 2004 Sep. 2005 Percent Change from Sep. 2004 to Sep. 20051
1. Piece Goods 488.9 497.3 1.7
2. Domestics and Draperies 526.6 514.7 -2.3
3. Women’s and Children’s Shoes 657.4 700.4 6.5
4. Men’s Shoes 842.8 890.9 5.7
5. Infants’ Wear 582.8 569.6 -2.3
6. Women’s Underwear 509.6 541.1 6.2
7. Women’s Hosiery 336.6 338.6 0.6
8. Women’s and Girls’ Accessories 576.2 572.2 -0.7
9. Women’s Outerwear and Girls’ Wear 371.0 364.0 -1.9
10. Men’s Clothing 531.2 532.9 0.3
11. Men’s Furnishings 567.1 561.0 -1.1
12. Boys’ Clothing and Furnishings 425.7 393.1 -7.7
13. Jewelry 886.2 882.6 -0.4
14. Notions 797.8 807.4 1.2
15. Toilet Articles and Drugs 993.2 996.4 0.3
16. Furniture and Bedding 608.0 596.0 -2.0
17. Floor Coverings 584.0 606.7 3.9
18. Housewares 711.7 703.4 -1.2
19. Major Appliances 197.4 204.4 3.5
20. Radio and Television 41.1 38.6 -6.1
21. Recreation and Education2 79.9 77.4 -3.1
22. Home Improvements2 128.9 136.4 5.8
23. Automotive Accessories2 113.0 116.3 2.9
         
Groups 1-15: Soft Goods 559.8 559.6 0.0
Groups 16-20: Durable Goods 379.8 377.0 -0.7
Groups 21-23: Misc. Goods2 93.0 92.8 -0.2
       
  Store Total3 495.4 494.5 -0.2
         
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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