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New IRS Business Code Number For Manufacturers’ Representatives The 6-digit NAICS (North American Industry Classification System) business code system used by the IRS to classify your business has been undergoing revision since it was first implemented in 1997. A recent joint investigation by MANA and the ERA into NAICS Codes turned up a new code, established in 2002, for manufacturers’ representatives. For reps who sell only on commission and don’t buy and resell, the following applies:
This industry comprises wholesale trade agents and brokers acting on behalf of buyers or sellers in the wholesale distribution of goods. Agents and brokers do not take title to the goods being sold. Instead, they receive a commission or fee for their service. Agents and brokers for all durable and non-durable goods are included in this industry. Illustrative Examples
Alternate Titles
For distributors, the correct code must be selected from the sub-sectors of “423 Merchant Wholesalers, Durable Goods” or “424 Merchant Wholesalers, Non-durable Goods”. If you are a manufacturers’ representative who also buys and resells, and therefore takes title to some of the products you sell, you will need to choose the code that best describes your business when filing your tax return. Remember, the data in your tax return will be compared to the population of filers who use the same code you use for the purpose of selecting your return for further review. Please visit the following web sites for more information: |
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