Business Codes

[Dan]

What code would you use for a professional golfer?  I used earlier 999999 (unable to classify).  This number is no longer listed in the principal business or professional activity codes, now the number is 999000.  The client goes to golf tournaments, makes money and has expenses attending these events.  Is there something that needs to be done to change this code to another code? 

[Lee B]

711219 according  to the NAICS Lookup

[jklcpa]

6 hours ago, Dan said:

Is there something that needs to be done to change this code to another code? 

No, use the new code cbslee gave you, and all you do is type the new code into the software

[Dan]

Is the code 711210 instead of 711219

[Lee B]

1 hour ago, Dan said:

Is the code 711210 instead of 711219

"Spectator sports arenas such as racetracks or sports clubs should use code 711210"

[jklcpa]

For Dan and other readers, here is the NAICS lookup site: https://www.naics.com/search/

Dan, type in "golfer" in the search box on that site and the code "711219" comes up with the following description:

Quote

This U.S. industry comprises (1) independent athletes, such as professional or semiprofessional golfers, boxers, and race car drivers, primarily engaged in participating in live sporting or racing events before a paying audience; (2) owners of racing participants, such as cars, dogs, and horses, primarily engaged in entering them in racing events or other spectator events; and (3) establishments, such as sports trainers, primarily engaged in providing specialized services required to support participants in sports events or competitions.

 

[Dan]

When I enter 711219 into the business code section for Schedule C in Drake it says your entry is not valid for a business code.  Also, that number is not listed in Principal Business or Professional Activity Codes on pages C-18 to C-20 of IRS instructions for Schedule C.  

[Lee B]

Then try 711510

[TaxCPANY]

When I got a red error preventing me from efiling a database provider, ATX tech help just told me that IRS had changed its biz codes.  519100 still shows up online as a valid code but ATX wouldn't accept it; 999000 fixed that -- but, oy, it just doesn't smell right.

[TexTaxToo]

Has anyone received a reject for an invalid business code, or is it just the software not allowing it?

The IRS says 999999 will still be accepted (at least for TY22 on F1040):

https://www.irs.gov/forms-pubs/update-to-principal-business-activity-code-2022-instructions-for-schedule-c-form-1040

Quote

As of January 25, 2023, the Instructions for Schedule C (Form 1040) have been revised to provide the updated principal business activity code for an unclassified establishment. The code has changed from 999999 to 999000. Individual filers can use either 999999 or 999000. Business filers must use 999000.