Ohio Tax Department Proposes to Repeal Regulation on NAICS Code Determination for Business Income Deduction

The Ohio Department of Taxation Nov. 19 proposed to repeal an individual income tax regulation on the determination of North American Industry Classification System (NAICS) codes for the state business income deduction as part of its five-year rule review process. The proposed rule for repeal includes measures to: 1) require taxpayers to determine and report the appropriate six-digit NAICS code for each business or professional activity from which income is included on Form IT BUS; 2) outline methods to report the NAICS codes if taxpayers are investors in pass-through entities, taxpayers receive business income from sources other than pass-through entities, ...