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Internal Revenue Bulletin:  2007-22 

May 29, 2007 

Rev. Rul. 2007-34

Table of Contents

LIFO; price indexes; department stores. The March 2007 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, March 31, 2007.

The following Department Store Inventory Price Indexes for March 2007 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, March 31, 2007.

In Notice 2007-44, this Bulletin, the Internal Revenue Service announced that it will discontinue publishing the BLS Department Store Inventory Price Indexes in the Internal Revenue Bulletin following the publication of the March 2007 indexes in this revenue ruling.

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 Mar. 2006 Mar. 2007 Percent Change From Mar. 2006 to Mar. 20071
1. Piece Goods 442.9 417.0 -5.8
2. Domestics and Draperies 495.7 473.4 -4.5
3. Women’s and Children’s Shoes 703.1 674.1 -4.1
4. Men’s Shoes 875.8 862.7 -1.5
5. Infants’ Wear 569.9 578.9 1.6
6. Women’s Underwear 545.6 563.5 3.3
7. Women’s Hosiery 347.3 340.0 -2.1
8. Women’s and Girls’ Accessories 583.1 571.7 -2.0
9. Women’s Outerwear and Girls’ Wear 367.6 381.4 3.8
10. Men’s Clothing 542.9 531.7 -2.1
11. Men’s Furnishings 571.3 578.2 1.2
12. Boys’ Clothing and Furnishings 408.0 410.6 0.6
13. Jewelry 854.9 901.8 5.5
14. Notions 792.2 793.1 0.1
15. Toilet Articles and Drugs 1008.3 1014.9 0.7
16. Furniture and Bedding 603.6 604.7 0.2
17. Floor Coverings 619.5 609.7 -1.6
18. Housewares 696.4 694.7 -0.2
19. Major Appliances 204.2 211.0 3.3
20. Radio and Television 37.1 33.0 -11.1
21. Recreation and Education2 77.2 76.3 -1.2
22. Home Improvements2 139.5 141.5 1.4
23. Automotive Accessories2 118.4 123.2 4.1
         
Groups 1-15: Soft Goods 560.6 564.8 0.7
Groups 16-20: Durable Goods 374.7 372.4 -0.6
Groups 21-23: Misc. Goods2 93.5 94.2 0.7
       
  Store Total3 495.0 497.3 0.5
         
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 John Roman Faron of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Faron at (202) 622-4930 (not a toll-free call).

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