Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

Section 472.—Last-in, First-out Inventories

26 CFR 1.472–1: Last-in, first-out inventories.

LIFO; price indexes; department stores. The June 2000 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, June 30, 2000.

Rev. Rul. 2000–39

The following Department Store Inventory Price Indexes for June 2000 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, June 30, 2000.

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)

Percent Change Groups June June from June 1999 1999 2000 to June 2000 ¹

1. Piece Goods - - - - - - - - - - - - - - - - - - - - - 555.1 496.1 -10.6
2. Domestics and Draperies - - - - - - - - - - - - 630.1 615.8 -2.3
3. Women’s and Children’s Shoes - - - - - - - - 645.1 626.5 -2.9
4. Men’s Shoes - - - - - - - - - - - - - - - - - - - - - 876.9 926.1 5.6
5. Infants’ Wear - - - - - - - - - - - - - - - - - - - - 610.1 642.2 5.3
6. Women’s Underwear - - - - - - - - - - - - - - - 561.4 568.3 1.2
7. Women’s Hosiery - - - - - - - - - - - - - - - - - 322.8 334.2 3.5
8. Women’s and Girls’Accessories - - - - - - - 549.3 538.3 -2.0
9. Women’s Outerwear and Girls’ Wear - - - - 392.0 385.0 -1.8
10. Men’s Clothing - - - - - - - - - - - - - - - - - - - 624.1 613.5 -1.7
11. Men’s Furnishings - - - - - - - - - - - - - - - - - 630.4 621.5 -1.4
12. Boys’ Clothing and Furnishings - - - - - - - - 488.9 491.7 0.6
13. Jewelry - - - - - - - - - - - - - - - - - - - - - - - - 961.2 924.3 -3.8
14. Notions - - - - - - - - - - - - - - - - - - - - - - - - 747.4 768.3 2.8
15. Toilet Articles and Drugs - - - - - - - - - - - - 968.8 971.1 0.2
16. Furniture and Bedding - - - - - - - - - - - - - - 682.9 670.6 -1.8
17. Floor Coverings - - - - - - - - - - - - - - - - - - 602.7 607.9 0.9
18. Housewares - - - - - - - - - - - - - - - - - - - - - 801.4 780.7 -2.6
19. Major Appliances - - - - - - - - - - - - - - - - - 235.7 233.6 -0.9
20. Radio and Television - - - - - - - - - - - - - - - 66.3 59.8 -9.8
21. Recreation and Education ² - - - - - - - - - - - 98.7 93.0 -5.8
22. Home Improvements ² - - - - - - - - - - - - - - 127.6 128.2 0.5
23. Auto Accessories ² - - - - - - - - - - - - - - - - - 106.7 106.3 -0.4

Groups 1 - 15: Soft Goods - - - - - - - - - - - - - 599.9 592.9 -1.2

Groups 16 - 20: Durable Goods - - - - - - - - - - 452.2 438.1 -3.1 Groups 21 - 23: Misc. Goods ² - - - - - - - - - - - 104.1 100.2 -3.7 Store Total ³ - - - - - - - - - - - - - - - - - - - - - - - - 545.0 534.9 -1.9

1 Absence of a minus sign before the percentage change in this column signifies a price increase.

2 Indexes on a January 1986=100 base.

3 The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

August 21, 2000 184 2000–34 I.R.B.

DRAFTING INFORMATION

The principal author of this revenue ruling is Alan J. Tomsic of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Tomsic on (202) 622-4970 (not a toll-free call).

Section 2001.—Imposition and Rate of Tax

26 CFR 20.2001–1: Valuation of adjusted taxable gifts and section 2701(d) taxable events.

If a taxpayer does not submit the information required under section 301.6501(c)–1(f) of the Procedure and Administrative Regulations to adequately disclose a gift on the initial gift tax return filed for the calendar year in which the gift was made, what procedure must the taxpayer follow to submit the required information in order to commence the run

ning of the period of limitations on assessment of the gift tax for the purpose of determining the amount of adjusted taxable gifts? See Rev. Proc. 2000–34, page 186.

Section 2504.—Taxable Gifts for Preceding Calendar Periods

26 CFR 25.2504–2: Determination of gifts for preceding calendar periods.

If a taxpayer does not submit the information required under section 301.6501(c)–1(f) of the Procedure and Administrative Regulations to adequately disclose a gift on the initial gift tax return filed for the calendar year in which the gift was made, what procedure must the taxpayer follow to submit the required information in order to commence the running of the period of limitations on assessment of the gift tax for the purpose of determining the correct amount of taxable gifts for the preceding calendar periods? See Rev. Proc. 2000–34, page 186.

Section 6501.—Limitations on Assessment and Collection

26 CFR 301.6501(c)–1: Exceptions to general period of limitations on assessment and collection.

If a taxpayer does not submit the information required under section 301.6501(c)–1(f) of the Procedure and Administrative Regulations to adequately disclose a gift on the initial gift tax return filed for the calendar year in which the gift was made, what procedure must the taxpayer follow to submit the required information in order to commence the running of the period of limitations on assessment of the gift tax? See Rev. Proc. 2000–34, page 186.

2000–34 I.R.B. 185 August 21, 2000