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Tax Simplification for Beauty Services and Small Businesses

This act amends tax laws to simplify tip reporting and space rental income for small businesses, especially in the beauty service industry. The goal is to reduce administrative burdens and promote tax compliance, potentially making it easier to operate a business.
Key points
Beauty service businesses (barbering, nail care, esthetics, spa treatments) can now claim a tax credit for employer social security taxes paid on employee tips, similar to food and beverage establishments.
A "safe harbor" program is introduced for beauty service employers, protecting them from tip examinations if they meet specific conditions, such as employee education programs and proper record-keeping.
Individuals who rent space to two or more beauty service providers, receiving at least $600 annually, will be required to report these rental payments to the IRS.
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Additional Information
Print number: 118_HR_45
Sponsor: Rep. LaHood, Darin [R-IL-16]
Process start date: 2023-01-09
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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 118_HR_45.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-01-09.

What are the main provisions?

Key points include:

  • Beauty service businesses (barbering, nail care, esthetics, spa treatments) can now claim a tax credit for employer social security taxes paid on employee tips, similar to food and beverage establishments.
  • A "safe harbor" program is introduced for beauty service employers, protecting them from tip examinations if they meet specific conditions, such as employee education programs and proper record-keeping.
  • Individuals who rent space to two or more beauty service providers, receiving at least $600 annually, will be required to report these rental payments to the IRS.
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 Rep. LaHood, Darin [R-IL-16].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes Economy