Bill > S45

This bill, the Small Business Tax Fairness and Compliance Simplification Act, aims to simplify reporting requirements, promote tax compliance, and reduce tip reporting compliance burdens in the beauty service industry. Key provisions include: 1. Extending the employer social security tax credit under Section 45B of the Internal Revenue Code to the beauty service industry, allowing employers to claim a credit for a portion of the Social Security taxes paid on tips received by employees. 2. Establishing a "safe harbor" for employers in the beauty service industry, where the IRS will not initiate a tip examination unless there is a specific issue with a current or former employee, as long as the employer meets certain requirements such as implementing an educational program and maintaining appropriate records. 3. Requiring information reporting for rental income received by businesses from individuals providing beauty services, to improve tax compliance in the industry. The bill also directs the Government Accountability Office (GAO) to conduct a study on the impact of the employer social security credit extension on federal income tax compliance and benefits.

Budget and Finance

https://www.congress.gov/bill/118th-congress/senate-bill/45/all-info