SECTION 1. PURPOSE

This revenue procedure provides guidance to taxpayers that use the dollar-value last-in, first-out (LIFO) inventory method and the inventory price index computation (IPIC) method regarding the computation of a percent change for the first taxable year in which such percent change is computed with reference to a revised CPI Detailed Report (CPI) or a PPI Detailed Report (PPI) for any index category affected by such revisions. A revised CPI or PPI is one that contains new index categories, eliminates some previously reported index categories, resets the base year of some index categories, or does not report the relative weights of some index categories. Generally, under this revenue procedure, any reasonable method of computing a percent change for a selected index category affected by revisions to the CPI or PPI will be accepted by the Internal Revenue Service. This revenue procedure also provides a specific safe harbor method that will be considered a reasonable method for these purposes.