Internal Revenue Bulletin:  2006-22 

May 30, 2006 

Rev. Rul. 2006-28


Table of Contents

LIFO; price indexes; department stores. The March 2006 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, March 31, 2006.

The following Department Store Inventory Price Indexes for March 2006 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, March 31, 2006.

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 Mar. 2005 Mar. 2006 Percent Change from Mar. 2005 to Mar. 20061
1. Piece Goods 465.1 442.9 -4.8
2. Domestics and Draperies 536.8 495.7 -7.7
3. Women’s and Children’s Shoes 685.9 703.1 2.5
4. Men’s Shoes 849.9 875.8 3.0
5. Infants’ Wear 571.0 569.9 -0.2
6. Women’s Underwear 547.7 545.6 -0.4
7. Women’s Hosiery 349.7 347.3 -0.7
8. Women’s and Girls’ Accessories 607.0 583.1 -3.9
9. Women’s Outerwear and Girls’ Wear 375.9 367.6 -2.2
10. Men’s Clothing 564.8 542.9 -3.9
11. Men’s Furnishings 587.0 571.3 -2.7
12. Boys’ Clothing and Furnishings 445.9 408.0 -8.5
13. Jewelry 882.1 854.9 -3.1
14. Notions 777.7 792.2 1.9
15. Toilet Articles and Drugs 991.4 1008.3 1.7
16. Furniture and Bedding 604.2 603.6 -0.1
17. Floor Coverings 602.4 619.5 2.8
18. Housewares 712.2 696.4 -2.2
19. Major Appliances 205.0 204.2 -0.4
20. Radio and Television 39.5 37.1 -6.1
21. Recreation and Education2 79.6 77.2 -3.0
22. Home Improvements2 137.3 139.5 1.6
23. Automotive Accessories2 114.4 118.4 3.5
         
Groups 1-15: Soft Goods 572.2 560.6 -2.0
Groups 16-20: Durable Goods 381.1 374.7 -1.7
Groups 21-23: Misc. Goods2 94.0 93.5 -0.5
       
  Store Total3 504.0 495.0 -1.8
         
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).


More Internal Revenue Bulletins