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Tax Simplification for Small Businesses and Beauty Services

This act introduces changes to tax regulations aimed at simplifying tip and income reporting for small businesses, especially in the beauty service industry. The goal is to reduce administrative burdens and promote tax compliance, potentially leading to greater financial stability for these businesses.
Key points
Extends the tax credit for employer social security taxes paid on employee tips to the beauty service industry (barbering, nail care, esthetics, body/spa treatments).
Establishes a "safe harbor" program for beauty service employers, protecting them from tip examinations if they meet specific conditions (educational programs, monthly tip reporting, record keeping).
Introduces new reporting requirements for income from space rentals in the beauty service industry, for payments of $600 or more annually from two or more individuals.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1998
Sponsor: Sen. Scott, Tim [R-SC]
Process start date: 2025-06-09
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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 119_S_1998.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-06-09.

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, nail care, esthetics, body/spa treatments).
  • Establishes a "safe harbor" program for beauty service employers, protecting them from tip examinations if they meet specific conditions (educational programs, monthly tip reporting, record keeping).
  • Introduces new reporting requirements for income from space rentals in the beauty service industry, for payments of $600 or more annually from two or more individuals.
What is the specific legal status?

The current status is Introduced.

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. Scott, Tim [R-SC].

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 2025-12-23.

CATEGORIES

Taxes Economy