Rev. Rul. 75-50

In Rev. Rul. 73-66, 1973-1 C.B. 218, the Internal Revenue Service held, based on the requirements and facts stated therein, that a taxpayer adopting the LIFO inventory method may, without violating section 472(c) and (e) of the Internal Revenue Code of 1954, include on its balance sheet a footnote or parenthetical statement showing inventory values had the FIFO method been used.

Held, where a taxpayer described in Rev. Rul. 73-66 discloses as a footnote or parenthetical statement the "excess of replacement cost or current cost over LIFO stated value" rather than the excess of "FIFO over LIFO cost", the Service will not terminate its LIFO election, provided that all the other requirements or facts in Rev. Rul. 73-66 are met, that is, the taxpayer may disclose only that which is permitted by Rev. Rul. 73-66 whether the disclosure is based on FIFO or replacement cost, but may not disclose the effect of earnings which is explicitly prohibited by Rev. Rul. 74-586, 1974-2 C.B. 156.

Rev. Rul. 73-66 is amplified.

¹ Also released as TIR-1341, dated January 23, 1975.