Bill > HR348

This bill, titled the Narrowing Exceptions for Withholding Taxes Act of 2013, aims to change how certain businesses are taxed by requiring shareholders of a "disqualified S corporation" engaged in a "professional service business" to include all their income and losses from that business when calculating their self-employment taxes. A "professional service business" is defined as a business primarily involved in fields like health, law, engineering, accounting, consulting, and others. The bill specifically targets S corporations (a type of business structure) that are partners in such businesses or where the business's main asset is the skill of a few employees. It also addresses family members of shareholders and partners who provide services to these businesses, potentially increasing their tax liability. The goal is to ensure that individuals providing substantial services in these professional fields are subject to employment taxes on their earnings, closing potential loopholes.