Internal Revenue Bulletin:  2006-26 

June 26, 2006 

Rev. Rul. 2006-33


Table of Contents

LIFO; price indexes; department stores. The April 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, April 30, 2006.

The following Department Store Inventory Price Indexes for April 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, April 30, 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 Apr 2005 Apr 2006 Percent Change from Apr 2005 to Apr 20061
1. Piece Goods 469.8 466.8 -0.6
2. Domestics and Draperies 539.1 494.2 -8.3
3. Women’s and Children’s Shoes 679.7 718.7 5.7
4. Men’s Shoes 876.6 881.7 0.6
5. Infants’ Wear 582.7 570.7 -2.1
6. Women’s Underwear 545.2 562.2 3.1
7. Women’s Hosiery 342.9 354.8 3.5
8. Women’s and Girls’ Accessories 599.6 578.2 -3.6
9. Women’s Outerwear and Girls’ Wear 376.2 372.6 -1.0
10. Men’s Clothing 565.6 548.8 -3.0
11. Men’s Furnishings 586.6 582.1 -0.8
12. Boys’ Clothing and Furnishings 440.4 414.3 -5.9
13. Jewelry 879.9 866.7 -1.5
14. Notions 779.0 788.2 1.2
15. Toilet Articles and Drugs 994.4 1003.5 0.9
16. Furniture and Bedding 604.2 607.8 0.6
17. Floor Coverings 601.0 615.0 2.3
18. Housewares 714.1 695.9 -2.5
19. Major Appliances 202.8 204.4 0.8
20. Radio and Television 39.5 36.9 -6.6
21. Recreation and Education2 78.3 76.9 -1.8
22. Home Improvements2 136.4 140.0 2.6
23. Automotive Accessories2 114.4 118.8 3.8
         
Groups 1-15: Soft Goods 572.4 567.3 -0.9
Groups 16-20: Durable Goods 380.8 374.8 -1.6
Groups 21-23: Misc. Goods2 93.0 93.4 0.4
       
  Store Total3 503.5 499.1 -0.9
         
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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