Is there a limit as to how many Product/Business Activity Codes a business can use when filing with the IRS? If my business has a code already established can I edit or add other codes?
Answers
The Principal Business Code just helps the IRS to administer any special tax code sections that might apply to your business. And it is ONE code, to reflect the principal activity. And you can change it for your next tax return if indeed your business has changed. And seek advice from a qualified tax professional for any additional issues.
From IRS.gov:
Principal Business Activity Codes -- "This list of principal business activities and their associated codes is designed to classify an enterprise by the type of activity in which it is engaged to facilitate the administration of the Internal Revenue Code. These principal business activity codes are based on the North American Industry Classification System.
Using the list of activities and codes below, determine from which activity the company derives the largest percentage of its "total receipts." Total receipts is defined as the sum of gross receipts or sales."
Best wishes!
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