Ten percent of the Web enterprise owners didn't file tax returns at all. The IRS defines electronic commerce as the sale or exchange of goods and services over the Internet. Computer sales and services. According to the IRS, these include software, hardware and communications networks. Financial services such as online stock trading, online banking and asset management services.
Business services includes business information services such as advertising and Web page design.
Retail and wholesale businesses. These include sellers of music, books, jewelry and clothing sold through online catalogs. These are services that may be subject to social and legal restrictions, such as pornography and online gambling. The owners of 12 percent of the Web sites selected for initial testing could not be identified on IRS data systems. The study attributed this to the fact that registrants of commercial domain names are not required to verify their identities with commercial registration services.