Internal Revenue Bulletin:  2006-48 

November 27, 2006 

Rev. Rul. 2006-59


Table of Contents

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

The following Department Store Inventory Price Indexes for September 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, September 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 Sep 2005 Sep 2006 Percent Change from Sep 2005 to Sep 20061
1. Piece Goods 497.3 455.4 -8.4
2. Domestics and Draperies 514.7 493.1 -4.2
3. Women’s and Children’s Shoes 700.4 691.1 -1.3
4. Men’s Shoes 890.9 888.7 -0.2
5. Infants’ Wear 569.6 570.3 0.1
6. Women’s Underwear 541.1 549.5 1.6
7. Women’s Hosiery 338.6 347.1 2.5
8. Women’s and Girls’ Accessories 572.2 521.2 -8.9
9. Women’s Outerwear and Girls’ Wear 364.0 377.0 3.6
10. Men’s Clothing 532.9 526.6 -1.2
11. Men’s Furnishings 561.0 572.0 2.0
12. Boys’ Clothing and Furnishings 393.1 403.0 2.5
13. Jewelry 882.6 906.4 2.7
14. Notions 807.4 818.5 1.4
15. Toilet Articles and Drugs 996.4 1008.3 1.2
16. Furniture and Bedding 596.0 598.4 0.4
17. Floor Coverings 606.7 610.8 0.7
18. Housewares 703.4 693.9 -1.4
19. Major Appliances 204.4 204.6 0.1
20. Radio and Television 38.6 35.1 -9.1
21. Recreation and Education2 77.4 76.2 -1.6
22. Home Improvements2 136.4 140.9 3.3
23. Automotive Accessories2 116.3 121.6 4.6
         
Groups 1-15: Soft Goods 559.6 563.8 0.8
Groups 16-20: Durable Goods 377.0 371.4 -1.5
Groups 21-23: Misc. Goods2 92.8 93.7 1.0
       
  Store Total3 494.5 496.2 0.3
         
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 John Roman Faron of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Faron at (202) 622-8142 (not a toll-free call).


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