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Tax Simplification for Small Businesses and Beauty Services

This act introduces tax changes to simplify tip reporting and space rental income for the beauty service industry. It aims to reduce administrative burdens for salon owners and improve tax compliance, potentially enhancing the financial stability of small businesses.
Key points
Extends the tax credit for employer social security taxes paid on employee tips to the beauty service industry (barbering, hair care, nail care, esthetics, body and spa treatments).
Establishes a tip reporting safe harbor for beauty service employers, protecting them from IRS tip examinations if they meet specific educational and reporting requirements.
Requires reporting of income from space rentals in the beauty service industry to the IRS if payments from two or more individuals exceed $600 annually.
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Expired
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Additional Information
Print number: 117_S_1233
Sponsor: Sen. Cardin, Benjamin L. [D-MD]
Process start date: 2021-04-20
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Small Business Tax Fairness and Compliance Simplification Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_1233.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-04-20.

What are the main provisions?

Key points include:

  • Extends the tax credit for employer social security taxes paid on employee tips to the beauty service industry (barbering, hair care, nail care, esthetics, body and spa treatments).
  • Establishes a tip reporting safe harbor for beauty service employers, protecting them from IRS tip examinations if they meet specific educational and reporting requirements.
  • Requires reporting of income from space rentals in the beauty service industry to the IRS if payments from two or more individuals exceed $600 annually.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Cardin, Benjamin L. [D-MD].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Taxes Labor Economy