Codes for tax returns have changed this year.

Find the instructions for the type of return in question - 1040 Schedule C, 1120, 1065, etc., look at the list of codes and choose one.

Never saw a "need" for these codes on a tax return as the US Census Bureau sends out zillion page questionaires on this.  But the change this year has been an utter pain for certain clients.  Also don't honestly believe IRS looks at the driver's license info for individual returns as tax return identity theft is still there.  Just wasted time on all these issues, in my opinion.

My question for this week is:

Does anybody know what the longest prison sentence was given to a tax preparer for picking a wrong code?

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@IRonMaN wrote:

 

Does anybody know what the longest prison sentence was given to a tax preparer for picking a wrong code?

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It used to be 999999 years, but this year the IRS changed it to 999000 years.

if it would have been that easy I would not have posted: there are business specific codes I need and they are not  found in 1040, 1065, 1120 etc

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@calidelicias wrote:

if it would have been that easy I would not have posted: there are business specific codes I need and they are not  found in 1040, 1065, 1120 etc

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Tax returns don't use NAICS codes.  They use the Principal Business Activity codes that are listed in the Instructions.  So if it isn't in the Instructions, you shouldn't be using it.

You can only use the codes in the IRS form instructions. It is that easy.

The software is programmed that way.

They are not necessarily NAICS codes. IRS calls them Business Codes.

Someone is getting a little dramatic for something that has no drama whatsoever.  I’ll second the vote for “it is that easy”