How to Avoid High Risk NAICS Codes: The Complete List
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How to Avoid High Risk NAICS Codes: The Complete List
We’ve compiled a huge list of NAICS codes that banks don’t like. It covers many different industries.
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Do NOT pick the wrong NAICS code! This small detail is a huge source of audit risk. The government uses this code to run algorithms and compare your income and expenses against other businesses in the same industry. If you use the code for a Laundromat but you actually run a high-margin tech company, your finances won't align with the industry standard, and the disparity score will trigger an audit. I had a client who was audited solely because of this, and while she owed nothing, it still cost
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