Internal Revenue Bulletin:  2007-13 

March 26, 2007 

Rev. Rul. 2007-18


Table of Contents

LIFO; price indexes; department stores. The January 2007 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, January 31, 2007.

The following Department Store Inventory Price Indexes for January 2007 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, January 31, 2007.

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 Jan. 2006 Jan. 2007 Percent Change From Jan. 2006 to Jan. 20071
1. Piece Goods 436.7 434.9 -0.4
2. Domestics and Draperies 506.9 475.2 -6.3
3. Women’s and Children’s Shoes 671.3 645.4 -3.9
4. Men’s Shoes 868.1 875.2 0.8
5. Infants’ Wear 555.2 558.2 0.5
6. Women’s Underwear 545.6 551.7 1.1
7. Women’s Hosiery 341.3 344.7 1.0
8. Women’s and Girls’ Accessories 555.4 537.2 -3.3
9. Women’s Outerwear and Girls’ Wear 325.7 338.1 3.8
10. Men’s Clothing 516.8 514.5 -0.4
11. Men’s Furnishings 555.5 559.2 0.7
12. Boys’ Clothing and Furnishings 396.5 371.0 -6.4
13. Jewelry 868.9 909.5 4.7
14. Notions 794.2 817.1 2.9
15. Toilet Articles and Drugs 1010.7 1004.5 -0.6
16. Furniture and Bedding 603.9 597.1 -1.1
17. Floor Coverings 611.0 613.7 0.4
18. Housewares 699.4 689.4 -1.4
19. Major Appliances 204.3 210.2 2.9
20. Radio and Television 37.4 33.6 -10.2
21. Recreation and Education2 77.3 76.3 -1.3
22. Home Improvements2 138.0 141.3 2.4
23. Automotive Accessories2 117.2 122.4 4.4
         
Groups 1-15: Soft Goods 540.9 542.1 0.2
Groups 16-20: Durable Goods 375.6 370.6 -1.3
Groups 21-23: Misc. Goods2 93.1 93.9 0.9
       
  Store Total3 482.8 482.8 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) 622-4930 (not a toll-free call).


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