Be sure that the correct business activity code is shown on Page 1 of Form 1120S each year.
If an S corporation conducts more than one trade or business, a primary business activity code needs to be selected.
This index offers a collection of all sorts of neat little links, including currency exchange rates, historical stock prices, and an IRS business activity code
Where the taxpayer's principal business activity code
, as described in the North American Industry Classification System (NAICS), involves retail, wholesale, mining, or certain information industries, the taxpayer generally may not rely upon Revenue Procedure 2002-28 when attempting to use the cash method of accounting.
For example, a taxpayer that provides services, including the provision of property incidental to the services, may change to the cash method of accounting pursuant to the revenue procedure even if its principal business activity code
makes it ineligible.
Also, the principal business activity codes
on the new form are based on the new North American Industry Classification System, which has replaced the Standard Industrial Classification system.