IRS Tax Law » Revenue Ruling 2004-93

Rev. Rul. 2004-93
Rev. Rul. 2004-93, 2004-37 I.R.B. 462
                       Internal Revenue Service (I.R.S.)
                                 Revenue Ruling
                     LIFO; PRICE INDEXES; DEPARTMENT STORES
                          Published: September 13, 2004

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

LIFO; price indexes; department stores. The July 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, July 31, 2004.

The following Department Store Inventory Price Indexes for July 2004 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, July 31, 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              July 2003    July 2004     Percent
                                                                      Change
                                                                    from July
                                                                     2003 to
                                                                    July 2004
                                                                      [FN1]
——————————————————————————-
1.         Piece Goods ………………….. 487.0        507.8           4.3
2.         Domestics and Draperies ……….. 570.0        525.0          -7.9
3.         Women’s and Children’s Shoes …… 613.9        608.5          -0.9
4.         Men’s Shoes ………………….. 831.2        831.7           0.1
5.         Infants’ Wear ………………… 573.3        560.5          -2.2
6.         Women’s Underwear …………….. 509.0        508.0          -0.2
7.         Women’s Hosiery ………………. 346.9        330.4          -4.8
8.         Women’s and Girls’
             Accessories ………………… 537.8        565.8           5.2
9.         Women’s Outerwear and Girls’
             Wear ………………………. 342.8        335.9          -2.0
10.        Men’s Clothing ……………….. 533.3        532.7          -0.1
11.        Men’s Furnishings …………….. 562.7        567.0           0.8
12.        Boys’ Clothing and
             Furnishings ………………… 424.4        420.9          -0.8
13.        Jewelry ……………………… 882.3        907.8           2.9
14.        Notions ……………………… 792.1        798.6           0.8
15.        Toilet Articles and Drugs ……… 992.0        993.3           0.1
16.        Furniture and Bedding …………. 619.9        616.3          -0.6
17.        Floor Coverings ………………. 587.3        587.7           0.1
18.        Housewares …………………… 722.5        712.1          -1.4
19.        Major Appliances ……………… 213.3        199.6          -6.4
20.        Radio and Television …………… 45.3         41.6          -8.2
21.        Recreation and Education
             [FN2] ………………………. 82.8         80.3          -3.0
22.        Home Improvements [FN2] ……….. 123.7        129.8           4.9
23.        Automotive Accessories [FN2] …… 111.4        112.7           1.2
Groups 1-15: Soft Goods …………………. 549.6        545.1          -0.8
Groups 16-20: Durable Goods ……………… 394.3        382.3          -3.0
Groups 21-23: Misc. Goods [FN2] …………… 94.0         93.3          -0.7
           Store Total [FN3] …………….. 493.4        487.2          -1.3
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 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).

Rev. Rul. 2004-93, 2004-37 I.R.B. 462

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