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Level 3
posted Mar 20, 2023 2:01:32 PM

What to choose instead of 454111 for Schedule C?

My schedule C has always been under the

454111 code. This year it is making me pick a new category. There is nothing similar to electronic retail anymore. The 

closest

 I can find is "general 

merchandise

 retailers". Should I choose this? Is it going to cause issues with the IRS that this code is changing? Why did they remove it?

 

Thanks

0 1 726
1 Best answer
Expert Alumni
Mar 20, 2023 2:23:53 PM

If the closest Principal Business or Professional Activity code you can find is "general merchandise retailers", yes, use that.

 

No, it's not going to cause you issues with the IRS. This code is used for statistical purposes only and does not affect your taxes. 

 

One reason for the change may be due to the fact that with the advent of Internet, social media, mobile phones and most of the technology that drives today’s business models, many of the NAICS Codes have became obsolete or overly broad.

1 Replies
Expert Alumni
Mar 20, 2023 2:23:53 PM

If the closest Principal Business or Professional Activity code you can find is "general merchandise retailers", yes, use that.

 

No, it's not going to cause you issues with the IRS. This code is used for statistical purposes only and does not affect your taxes. 

 

One reason for the change may be due to the fact that with the advent of Internet, social media, mobile phones and most of the technology that drives today’s business models, many of the NAICS Codes have became obsolete or overly broad.