This bill aims to simplify tax reporting requirements and promote compliance in the beauty service industry. It extends existing tax credits for employer social security taxes on employee tips to beauty service establishments, establishes a safe harbor for employer tip reporting, and implements new information reporting requirements for rental payments to beauty service professionals. The legislation seeks to reduce the compliance burden on employers in the beauty service sector while ensuring proper reporting of income.

Tim Scott, Angela Alsobrooks, Bill Cassidy

S1998 U.S. Senate: Small Business Tax Fairness and…

Introduced

S. 1998

Introduced in Senate · June 18, 2025

June 9, 2025

Mr. Scott of South Carolina (for himself and Ms. Alsobrooks) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to simplify reporting requirements, promote tax compliance, and reduce tip reporting compliance burdens in the beauty service industry.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “Small Business Tax Fairness and Compliance Simplification Act”.

S.1998

S. 1998

S.1998

S. 1998