Part II - North American Industry Classification System (NAICS) Listing

The North American Industry Classification System (NAICS) replaced the Principle Industry Activity (PIA) and the Principle Business Activity (PBA) PIA/PBA codes for tax periods 199812 and subsequent for individual returns. These codes appeared on some corporate and partnership returns starting in 1997 due to fiscal year overlaps.

Reference will be made to the appropriate NAICS to determine the class of the case. The primary return NAICS will be the determinant factor for placement in the appropriate class. If no NAICS appears on a return, group managers will determine the proper class based upon a review of the case file. Once a class has been determined, Parts I, III and IV should be used to determine the final grade. See NAICS Codes in RGS and ERCS, for NAICS classification codes.

The listing below reflects the respective Class Number for individual, business and fiduciary returns:

Class 1 – Manufacturing, Construction, Mining

Class 2 – Retail, Wholesale, Transportation

Class 3 – Services, Farming

Class 4 – Financial and Utilities

Class 5 – Nonbusiness Individual and Fiduciary