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RR-2003-121

Rev. Rul. 2003-121
(back to all Revenue Rulings, or view IRB 2003-48)


Rev. Rul. 2003-121

LIFO; price indexes; department stores. The September 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, September 30, 2003.

The following Department Store Inventory Price Indexes for September 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, September 30, 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 Sept. 2002 Sept. 2003 Percent Change from Sept. 2002 to Sept. 2003¹
1. Piece Goods 484.6 482.6 -0.4
2. Domestics and Draperies 574.2 559.7 -2.5
3. Women's and Children's Shoes 658.0 651.9 -0.9
4. Men's Shoes 886.9 847.3 -4.5
5. Infants' Wear 618.5 611.8 -1.1
6. Women's Underwear 548.2 517.8 -5.5
7. Women's Hosiery 343.2 355.5 3.6
8. Women's and Girls' Accessories 549.2 584.6 6.4
9. Women's Outerwear and Girls' Wear 385.7 377.3 -2.2
10. Men's Clothing 561.1 542.3 -3.4
11. Men's Furnishings 593.8 579.8 -2.4
12. Boys' Clothing and Furnishings 446.2 448.2 0.4
13. Jewelry 896.7 875.9 -2.3
14. Notions 809.1 788.2 -2.6
15. Toilet Articles and Drugs 971.4 980.4 0.9
16. Furniture and Bedding 625.9 620.7 -0.8
17. Floor Coverings 601.1 588.6 -2.1
18. Housewares 748.9 717.2 -4.2
19. Major Appliances 222.2 210.3 -5.4
20. Radio and Television 47.7 44.7 -6.3
21. Recreation and Education2 85.4 81.9 -4.1
22. Home Improvements2 124.9 123.9 -0.8
23. Automotive Accessories2 112.0 111.7 -0.3
Groups 1-15: Soft Goods 578.4 568.8 -1.7
Groups 16-20: Durable Goods 407.9 391.4 -4.0
Groups 21-23: Misc. Goods2 96.0 93.5 -2.6
Store Total3 515.8 504.3 -2.2
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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