Small Business Tax Fairness and Compliance Simplification Act

This proposal focuses on the beauty service industry. It aims to simplify tax reporting, encourage tax compliance, and reduce the burden of reporting tips for workers and businesses in this field . It also adds a new reporting rule for income from renting out space in salons and similar settings (often called booth or chair rentals) .

Here’s the gist:

• Simplifies how beauty industry workers and businesses report income and tips, with the goal of making it easier to follow the rules .
• Creates a specific reporting requirement for money earned from renting space to beauty professionals, so that this income is clearly reported to the IRS .

Key points:

• Who is affected: Salon owners, booth/chair renters, and beauty professionals who receive tips .
• What changes: Easier tax reporting for tips and a new, clear reporting rule for rental income in salons .
• Focus area: Beauty service industry, including spaces rented inside salons .