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RR-2003-128

Rev. Rul. 2003-128
(back to all Revenue Rulings, or view IRB 2003-52)


Rev. Rul. 2003-128

LIFO; price indexes; department stores. The October 2003 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, 2003.

The following Department Store Inventory Price Indexes for October 2003 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, 2003.

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 Oct. 2002 Oct. 2003 Percent Change from Oct. 2002 to Oct. 2003¹
1. Piece Goods 485.7 487.3 0.3
2. Domestics and Draperies 581.6 556.5 -4.3
3. Women’s and Children’s Shoes 660.4 657.4 -0.5
4. Men’s Shoes 895.6 844.9 -5.7
5. Infants’ Wear 628.9 609.1 -3.1
6. Women’s Underwear 544.2 520.2 -4.4
7. Women’s Hosiery 339.8 352.3 3.7
8. Women’s and Girls’ Accessories 551.6 578.0 4.8
9. Women’s Outerwear and Girls’ Wear 388.2 387.8 -0.1
10. Men’s Clothing 573.0 552.3 -3.6
11. Men’s Furnishings 599.3 592.1 -1.2
12. Boys’ Clothing and Furnishings 459.4 441.9 -3.8
13. Jewelry 897.1 883.7 -1.5
14. Notions 808.9 786.9 -2.7
15. Toilet Articles and Drugs 975.1 984.0 0.9
16. Furniture and Bedding 626.4 618.8 -1.2
17. Floor Coverings 592.6 589.4 -0.5
18. Housewares 745.8 714.3 -4.2
19. Major Appliances 223.7 210.2 -6.0
20. Radio and Television 47.6 44.4 -6.7
21. Recreation and Education2 85.2 82.1 -3.6
22. Home Improvements2 124.6 125.3 0.6
23. Automotive Accessories2 111.3 111.8 0.4
Groups 1-15: Soft Goods 582.7 574.9 -1.3
Groups 16-20: Durable Goods 407.4 390.0 -4.3
Groups 21-23: Misc. Goods2 95.7 93.8 -2.0
Store Total3 518.1 507.8 -2.0
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 Denise Carmichael of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Ms. Carmichael at (202) 622-6888 (not a toll-free call).


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