Revenue Ruling 2003-128

Rev. Rul. 2003-128
Rev. Rul. 2003-128, 2003-52 I.R.B. 1247, 2003-2 C.B. 1247
                       Internal Revenue Service (I.R.S.)
                                 Revenue Ruling
                     LIFO; PRICE INDEXES; DEPARTMENT STORES
                          Published: December 29, 2003

 Section 472.–Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first-out inventories.

  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.

  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 s 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. 2003
                                                                       [FN1]
——————————————————————————-
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 Education
             [FN2] ……………………….. 85.2         82.1         -3.6
22.        Home Improvements [FN2] ………… 124.6        125.3          0.6
23.        Automotive Accessories [FN2] ……. 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. Goods [FN2] ……………. 95.7         93.8         -2.0
           Store Total [FN3] ……………… 518.1        507.8         -2.0
FN1. Absence of a minus sign before the percentage change in this column
  signifies a price increase.
FN2. Indexes on a January 1986 = 100 base.
FN3. The 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).

 Rev. Rul. 2003-128, 2003-52 I.R.B. 1247, 2003-2 C.B. 1247

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December 28th, 2003 |