Internal Revenue Bulletin:  2006-52 

December 26, 2006 

Rev. Rul. 2006-62


Table of Contents

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

The following Department Store Inventory Price Indexes for October 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, October 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 2005 2006 Percent Change from Oct. 2005 to Oct. 20061
1. Piece Goods 488.1 460.3 -5.7
2. Domestics and Draperies 512.4 488.0 -4.8
3. Women’s and Children’s Shoes 710.9 697.7 -1.9
4. Men’s Shoes 884.9 886.7 0.2
5. Infants’ Wear 566.9 582.1 2.7
6. Women’s Underwear 542.9 551.3 1.5
7. Women’s Hosiery 337.1 339.8 0.8
8. Women’s and Girls’ Accessories 578.4 538.8 -6.8
9. Women’s Outerwear and Girls’ Wear 374.0 383.0 2.4
10. Men’s Clothing 538.4 533.9 -0.8
11. Men’s Furnishings 571.2 581.1 1.7
12. Boys’ Clothing and Furnishings 405.4 408.4 0.7
13. Jewelry 873.8 907.3 3.8
14. Notions 806.3 818.3 1.5
15. Toilet Articles and Drugs 1003.6 1011.6 0.8
16. Furniture and Bedding 598.1 600.8 0.5
17. Floor Coverings 606.4 612.1 0.9
18. Housewares 706.7 691.8 -2.1
19. Major Appliances 203.7 206.7 1.5
20. Radio and Television 38.3 34.9 -8.9
21. Recreation and Education2 77.8 76.6 -1.5
22. Home Improvements2 137.3 141.0 2.7
23. Automotive Accessories2 116.3 121.8 4.7
         
Groups 1-15: Soft Goods 565.3 568.7 0.6
Groups 16-20: Durable Goods 377.4 371.6 -1.5
Groups 21-23: Misc. Goods2 93.2 94.0 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 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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