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RR-2004-91

Rev. Rul. 2004-91
(back to IRB 2004-35)


Rev. Rul. 2004-91

LIFO; price indexes; department stores. The June 2004 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, June 30, 2004.

The following Department Store Inventory Price Indexes for June 2004 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, June 30, 2004.

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 June 2003 June 2004 Percent Change from June 2003 to June 20041
1. Piece Goods 464.3 490.9 5.7
2. Domestics and Draperies 557.0 538.7 -3.3
3. Women’s and Children’s Shoes 629.1 631.8 0.4
4. Men’s Shoes 849.5 854.5 0.6
5. Infants’ Wear 588.9 567.3 -3.7
6. Women’s Underwear 516.1 508.4 -1.5
7. Women’s Hosiery 348.9 329.9 -5.4
8. Women’s and Girls’ Accessories 547.9 581.5 6.1
9. Women’s Outerwear and Girls’ Wear 362.9 361.9 -0.3
10. Men’s Clothing 541.8 540.3 -0.3
11. Men’s Furnishings 570.2 578.3 1.4
12. Boys’ Clothing and Furnishings 449.6 431.3 -4.1
13. Jewelry 877.8 897.4 2.2
14. Notions 791.4 791.9 0.1
15. Toilet Articles and Drugs 990.0 998.9 0.9
16. Furniture and Bedding 619.9 624.2 0.7
17. Floor Coverings 586.6 592.9 1.1
18. Housewares 726.0 712.6 -1.8
19. Major Appliances 214.1 200.4 -6.4
20. Radio and Television 45.4 41.9 -7.7
21. Recreation and Education2 83.1 80.7 -2.9
22. Home Improvements2 125.4 129.3 3.1
23. Automotive Accessories2 111.5 112.4 0.8
Groups 1-15: Soft Goods 559.5 559.3 0.0
Groups 16-20: Durable Goods 395.6 384.1 -2.9
Groups 21-23: Misc. Goods2 94.4 93.4 -1.1
Store Total3 500.1 496.5 -0.7
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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