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Level 2

Question

Should I change the Principal Business Code? Previously other personal services, but Direct Sales might be more fitting.

Forum|Forum|7 years ago
June 3, 2019
2 replies
36 views

My wife has a secondary business promoting a life style product. She does not sell the product, but only promotes the brand, but is receiving commission for sales. Sales are Direct Online Sales.
We had entered "Other personal services 812990" in last years return, but "Direct Sales 454390" seem possibly be more appropriate. Can we simply change this on this years return, or would this institute a new business and we need to close the old one?
Thanks

TurboTax Free Edition Online

Level 15

You can enter the correct code in this year's return.

Based on your question, you do not need to initiate a new business.

The code is for information purposes and has no impact on the tax computation on the tax return.

Level 11

Overall the IRS could care less what your business is or how you classify it. The only thing they care about, is that you pay your taxes.