Internal Revenue Bulletin:  2007-5 

January 29, 2007 

Rev. Rul. 2007-6


Table of Contents

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

The following Department Store Inventory Price Indexes for November 2006 were issued by the Bureau of Labor Statistics (BLS). 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, November 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 Nov. 2005 Nov. 2006 Percent Change from Nov. 2005 to Nov. 20061
1. Piece Goods 480.6 471.2 -2.0
2. Domestics and Draperies 508.2 478.1 -5.9
3. Women’s and Children’s Shoes 684.7 678.1 -1.0
4. Men’s Shoes 868.9 894.2 2.9
5. Infants’ Wear 564.1 573.3 1.6
6. Women’s Underwear 548.8 560.2 2.1
7. Women’s Hosiery 339.8 346.5 2.0
8. Women’s and Girls’ Accessories 582.1 542.0 -6.9
9. Women’s Outerwear and Girls’ Wear 368.3 373.5 1.4
10. Men’s Clothing 542.1 529.6 -2.3
11. Men’s Furnishings 574.9 574.9 0.0
12. Boys’ Clothing and Furnishings 403.5 411.3 1.9
13. Jewelry 861.4 893.3 3.7
14. Notions 803.1 817.9 1.8
15. Toilet Articles and Drugs 1001.0 1005.1 0.4
16. Furniture and Bedding 596.7 596.9 0.0
17. Floor Coverings 612.3 623.2 1.8
18. Housewares 701.9 689.7 -1.7
19. Major Appliances 204.3 208.9 2.3
20. Radio and Television 38.1 34.4 -9.7
21. Recreation and Education2 77.6 76.7 -1.2
22. Home Improvements2 137.2 141.3 3.0
23. Automotive Accessories2 116.5 122.2 4.9
         
Groups 1-15: Soft Goods 561.0 561.9 0.2
Groups 16-20: Durable Goods 376.2 371.2 -1.3
Groups 21-23: Misc. Goods2 93.1 94.2 1.2
       
  Store Total3 495.4 495.3 0.0
         
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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