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RR-2004-19

Rev. Rul. 2004-19
(back to IRB 2004-08)


Rev. Rul. 2004-19

LIFO; price indexes; department stores. The December 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, December 31, 2003.

The following Department Store Inventory Price Indexes for December 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, December 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 Dec. 2002 Dec. 2003 Percent Change from Dec. 2002 to Dec. 2003¹
1. Piece Goods 465.6 473.7 1.7
2. Domestics and Draperies 561.8 543.9 -3.2
3. Women’s and Children’s Shoes 640.1 629.7 -1.6
4. Men’s Shoes 888.0 847.8 -4.5
5. Infants’ Wear 612.4 586.4 -4.2
6. Women’s Underwear 536.7 509.6 -5.0
7. Women’s Hosiery 345.3 344.1 -0.3
8. Women’s and Girls’ Accessories 540.3 551.3 2.0
9. Women’s Outerwear and Girls’ Wear 356.4 362.7 1.8
10. Men’s Clothing 550.6 535.1 -2.8
11. Men’s Furnishings 584.7 583.4 -0.2
12. Boys’ Clothing and Furnishings 446.2 429.0 -3.9
13. Jewelry 855.4 848.0 -0.9
14. Notions 793.2 799.6 0.8
15. Toilet Articles and Drugs 967.5 976.5 0.9
16. Furniture and Bedding 623.8 612.9 -1.7
17. Floor Coverings 596.3 595.1 -0.2
18. Housewares 734.4 710.6 -3.2
19. Major Appliances 219.4 206.8 -5.7
20. Radio and Television 47.3 43.8 -7.4
21. Recreation and Education2 84.3 81.5 -3.3
22. Home Improvements2 125.8 125.4 -0.3
23. Automotive Accessories2 111.3 112.1 0.7
Groups 1-15: Soft Goods 560.7 555.8 -0.9
Groups 16-20: Durable Goods 402.4 386.8 -3.9
Groups 21-23: Misc. Goods2 95.2 93.5 -1.8
Store Total3 503.0 495.1 -1.6
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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