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Internal Revenue Bulletin:  2006-44 

October 30, 2006 

Rev. Rul. 2006-53

Table of Contents

LIFO; price indexes; department stores. The August 2006 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, August 31, 2006.

The following Department Store Inventory Price Indexes for August 2006 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, August 31, 2006.

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 Aug 2005 Aug 2006 Percent Change from Aug 2005 to Aug 20061
1. Piece Goods 486.8 457.5 -6.0
2. Domestics and Draperies 512.2 486.2 -5.1
3. Women’s and Children’s Shoes 661.5 671.9 1.6
4. Men’s Shoes 875.1 877.5 0.3
5. Infants’ Wear 554.0 563.9 1.8
6. Women’s Underwear 542.8 534.2 -1.6
7. Women’s Hosiery 339.1 340.6 0.4
8. Women’s and Girls’ Accessories 585.4 531.7 -9.2
9. Women’s Outerwear and Girls’ Wear 331.2 341.4 3.1
10. Men’s Clothing 527.1 517.3 -1.9
11. Men’s Furnishings 557.0 551.5 -1.0
12. Boys’ Clothing and Furnishings 384.1 384.3 0.1
13. Jewelry 888.5 916.9 3.2
14. Notions 810.5 823.5 1.6
15. Toilet Articles and Drugs 998.0 995.5 -0.3
16. Furniture and Bedding 598.5 603.3 0.8
17. Floor Coverings 614.0 622.4 1.4
18. Housewares 708.6 697.7 -1.5
19. Major Appliances 203.9 203.5 -0.2
20. Radio and Television 38.7 35.5 -8.3
21. Recreation and Education2 77.3 76.3 -1.3
22. Home Improvements2 136.0 140.3 3.2
23. Automotive Accessories2 115.9 121.2 4.6
         
Groups 1-15: Soft Goods 544.8 544.9 0.0
Groups 16-20: Durable Goods 378.6 373.1 -1.5
Groups 21-23: Misc. Goods2 92.6 93.6 1.1
       
  Store Total3 485.7 484.9 -0.2
         
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 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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