Internal Revenue Bulletin:  2005-52 

December 27, 2005 

Rev. Rul. 2005-79


Table of Contents

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

The following Department Store Inventory Price Indexes for October 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, October 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 Oct. 2004 Oct. 2005 Percent Change from Oct. 2004 to Oct. 20051
1. Piece Goods 491.6 488.1 -0.7
2. Domestics and Draperies 539.0 512.4 -4.9
3. Women’s and Children’s Shoes 665.8 710.9 6.8
4. Men’s Shoes 832.1 884.9 6.3
5. Infants’ Wear 584.3 566.9 -3.0
6. Women’s Underwear 513.0 542.9 5.8
7. Women’s Hosiery 337.6 337.1 -0.1
8. Women’s and Girls’ Accessories 597.3 578.4 -3.2
9. Women’s Outerwear and Girls’ Wear 385.5 374.0 -3.0
10. Men’s Clothing 542.7 538.4 -0.8
11. Men’s Furnishings 578.7 571.2 -1.3
12. Boys’ Clothing and Furnishings 430.6 405.4 -5.9
13. Jewelry 892.6 873.8 -2.1
14. Notions 793.7 806.3 1.6
15. Toilet Articles and Drugs 995.6 1003.6 0.8
16. Furniture and Bedding 608.5 598.1 -1.7
17. Floor Coverings 581.7 606.4 4.2
18. Housewares 714.6 706.7 -1.1
19. Major Appliances 202.8 203.7 0.4
20. Radio and Television 41.1 38.3 -6.8
21. Recreation and Education2 79.8 77.8 -2.5
22. Home Improvements2 131.0 137.3 4.8
23. Automotive Accessories2 113.1 116.3 2.8
         
Groups 1-15: Soft Goods 569.9 565.3 -0.8
Groups 16-20: Durable Goods 382.5 377.4 -1.3
Groups 21-23: Misc. Goods2 93.1 93.2 0.1
       
  Store Total3 502.4 498.4 -0.8
         
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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