Internal Revenue Bulletin:  2006-39 

September 25, 2006 

Rev. Rul. 2006-48


Table of Contents

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

The following Department Store Inventory Price Indexes for July 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, July 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 July 2005 July 2006 Percent Change from July 2005 to July 20061
1. Piece Goods 495.0 465.0 -6.1
2. Domestics and Draperies 517.7 488.7 -5.6
3. Women’s and Children’s Shoes 629.0 655.7 4.2
4. Men’s Shoes 867.0 875.4 1.0
5. Infants’ Wear 548.0 557.7 1.8
6. Women’s Underwear 541.2 546.8 1.0
7. Women’s Hosiery 339.7 343.8 1.2
8. Women’s and Girls’ Accessories 580.5 544.5 -6.2
9. Women’s Outerwear and Girls’ Wear 321.7 327.3 1.7
10. Men’s Clothing 520.6 514.2 -1.2
11. Men’s Furnishings 552.6 550.3 -0.4
12. Boys’ Clothing and Furnishings 386.1 371.3 -3.8
13. Jewelry 870.2 898.0 3.2
14. Notions 809.2 822.9 1.7
15. Toilet Articles and Drugs 997.1 995.1 -0.2
16. Furniture and Bedding 599.1 602.4 0.6
17. Floor Coverings 609.8 614.1 0.7
18. Housewares 712.2 697.1 -2.1
19. Major Appliances 203.5 204.2 0.3
20. Radio and Television 38.9 35.8 -8.0
21. Recreation and Education2 77.9 76.3 -2.1
22. Home Improvements2 137.6 139.6 1.5
23. Automotive Accessories2 115.1 120.7 4.9
         
Groups 1-15: Soft Goods 537.3 538.3 0.2
Groups 16-20: Durable Goods 379.6 373.2 -1.7
Groups 21-23: Misc. Goods2 93.0 93.4 0.4
       
  Store Total3 481.6 480.8 -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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