,i #aac? ,,congress #b;d ,session ,h4 ,r4 #efae ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,septemb] #ah1 #bjad ,mr4 ,sam ,johnson ( ,texas introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to exp& ! tip tax cr$it to employ]s ( cosmetologi/s & to promote tax compliance 9 ! cosmetology sector4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,small ,bus9ess ,tax ,equalization & ,compliance ,act ( #bjad4 #b4 ,expansion ( cr$it = portion ( social security taxes paid ) respect to employee tips 7a7 ,expansion ( cr$it to o!r l9es ( bus9ess ,p>agraph 7#b7 ( section #de;,b7b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7#b7 ,application only to c]ta9 l9es ( bus9ess ,9 apply+ p>agraph 7#a71 !re %all be tak5 into acc\nt only tips receiv$ f cu/om]s or cli5ts 9 connection )-- 7,a7 ! provid+1 deliv]+1 or s]v+ ( food or bev]ages = consumption if ! tipp+ ( employees deliv]+ or s]v+ food or bev]ages by cu/om]s is cu/om>y1 or 7,b7 ! provid+ ( any cosmetology s]vice = cu/om]s or cli5ts at a facility lic5s$ to provide su* s]vice if ! tipp+ ( employees provid+ su* s]vice is cu/om>y4 4 7b7 ,def9ition ( cosmetology s]vice ,section #de;,b ( su* ,code is am5d$ by r$esignat+ subsections 7c7 & 7d7 z subsections 7d7 & 7e71 respectively1 & by ins]t+ aft] subsection 7b7 ! foll[+ new subsection3 7c7 ,cosmetology s]vice ,= purposes ( ?is section1 ! t]m cosmetology s]vice means-- 7#a7 hairdress+1 7#b7 haircutt+1 7#c7 manicures & p$icures1 7#d7 body wax+1 facials1 mud packs1 wraps1 & o!r simil> sk9 treatm5ts1 & 7#e7 any o!r beauty-relat$ s]vice provid$ at a facility at :i* a majority ( ! s]vices provid$ 7z det]m9$ on ! basis ( gross rev5ue7 are describ$ 9 p>agraphs 7#a7 ?r\gh 7#d74 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to tips receiv$ = s]vices p]=m$ aft] ,decemb] #ca1 #bjac4 #c4 ,in=mation report+ & taxpay] education = provid]s ( cosmetology s]vices 7a7 ,9 g5]al ,subp>t ,b ( "p ,,iii ( sub*apt] ,a ( *apt] #fa ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #fjej,w ! foll[+ new section3 #fjej,x4 ,returns relat+ to cosmetology s]vices & in=mation to be provid$ to cosmetologi/s 7a7 ,9 g5]al ,e p]son 7ref]r$ to 9 ?is section z a report+ p]son7 :o-- 7#a7 employs #a or m cosmetologi/s to provide any cosmetology s]vice1 7#b7 r5ts a *air to #a or m cosmetologi/s to provide any cosmetology s]vice on at lea/ #e cal5d> days dur+ a cal5d> ye>1 or 7#c7 9 connection ) its trade or bus9ess or r5tal activity1 o!rwise receives comp5sation f1 or pays comp5sation to1 #a or m cosmetologi/s = ! "r to provide cosmetology s]vices to1 or = cosmetology s]vices provid$ to1 ?ird-p>ty patrons1 %all comply ) ! return requirem5ts ( subsection 7b7 & ! taxpay] education requirem5ts ( subsection 7c74 7b7 ,return requirem5ts ,! return requirem5ts ( ?is subsection are met by a report+ p]son if ! requirem5ts ( ea* ( ! foll[+ p>agraphs applicable to su* p]son are met4 7#a7 ,employees ,9 ! case ( a report+ p]son :o employs #a or m cosmetologi/s to provide cosmetology s]vices1 ! requirem5ts ( ?is p>agraph are met if su* p]son meets ! requirem5ts ( sections #fjea 7relat+ to receipts = employees7 & #fjec7;b7 7relat+ to tip report+7 ) respect to ea* su* employee4 7#b7 ,indep5d5t contractors ,9 ! case ( a report+ p]son :o pays comp5sation to #a or m cosmetologi/s 7o!r ?an z employees7 = cosmetology s]vices provid$ to ?ird-p>ty patrons1 ! requirem5ts ( ?is p>agraph are met if su* p]son meets ! applicable requirem5ts ( section #fjda 7relat+ to returns fil$ by p]sons mak+ paym5ts ( #fjj or m 9 ! c\rse ( a trade or bus9ess71 section #fjda;,a 7relat+ to returns to be fil$ by s]vice-recipi5ts :o pay m ?an #fjj 9 a cal5d> ye> = s]vices f a s]vice provid]71 & ea* o!r provision ( ?is subp>t t may be applicable to su* comp5sation4 7#c7 ,*air r5t]s 7,a7 ,9 g5]al ,9 ! case ( a report+ p]son :o receives r5t or o!r fees or comp5sation f #a or m cosmetologi/s = use ( a *air or = rights to provide any cosmetology s]vice at a salon or o!r simil> facility = m ?an #e days 9 a cal5d> ye>1 ! requirem5ts ( ?is p>agraph are met if su* p]son-- 7i7 makes a return1 accord+ to ! =ms or regulations prescrib$ by ! ,secret>y1 sett+ =? ! "n1 address1 & ,,t9 ( ea* su* cosmetologi/ & ! am\nt receiv$ f ea* su* cosmetologi/1 & 7ii7 furni%es to ea* cosmetologi/ ^: "n is requir$ to be set =? on su* return a writt5 /atem5t %[+-- 7,i7 ! "n1 address1 & phone numb] ( ! in=mation contact ( ! report+ p]son1 7,,ii7 ! am\nt receiv$ f su* cosmetologi/1 & 7,,iii7 a /atem5t in=m+ su* cosmetologi/ t 7z requir$ by ?is section71 ! report+ p]son has advis$ ! ,int]nal ,rev5ue ,s]vice t ! cosmetologi/ provid$ cosmetology s]vices dur+ ! cal5d> ye> to :i* ! /atem5t relates4 7,b7 ,me?od & "t = provid+ /atem5t ,! writt5 /atem5t requir$ by clause 7ii7 ( subp>agraph 7,a7 %all be furni%$ 7ei!r 9 p]son or by fir/-class mail :i* includes adequate notice t ! /atem5t or in=mation is enclos$7 to ! p]son on or be=e ,janu>y #ca ( ! ye> foll[+ ! cal5d> ye> = :i* ! return "u clause 7i7 ( subp>agraph 7,a7 is to be made4 7c7 ,taxpay] education requirem5ts ,9 ! case ( a report+ p]son :o is requir$ to provide a /atem5t pursuant to subsection 7b71 ! requirem5ts ( ?is subsection are met if su* p]son provides to ea* su* cosmetologi/ annually a publication1 z designat$ by ! ,secret>y1 describ+-- 7#a7 9 ! case ( an employee1 ! tax & tip report+ obligations ( employees1 & 7#b7 9 ! case ( a cosmetologi/ :o is n an employee ( ! report+ p]son1 ! tax obligations ( indep5d5t contractors or proprietor%ips4 ,! publications %all be furni%$ ei!r 9 p]son or by fir/-class mail :i* includes adequate notice t ! publication is enclos$4 7d7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,cosmetologi/ 7,a7 ,9 g5]al ,! t]m cosmetologi/ means an individual :o provides any cosmetology s]vice4 7,b7 ,anti-avoidance rule ,! ,secret>y may by regulation or rul+ exp& ! t]m cosmetologi/ to include any entity or arrangem5t if ! ,secret>y det]m9es t entities are be+ =m$ to circumv5t ! report+ requirem5ts ( ?is section4 7#b7 ,cosmetology s]vice ,! t]m cosmetology s]vice has ! mean+ giv5 to su* t]m by section #de;,b7c74 7#c7 ,*air ,! t]m *air includes a *air1 boo?1 or o!r furniture or equipm5t f :i* an individual provides a cosmetology s]vice 7det]m9$ )\t reg>d to :e!r ! cosmetologi/ is entitl$ to use a specific *air1 boo?1 or o!r simil> furniture or equipm5t or has an exclusive "r to use any su* *air1 boo?1 or o!r simil> furniture or equipm5t74 7e7 ,exceptions = c]ta9 employees ,subsection 7c7 %all n apply to a report+ p]son ) respect to an employee :o is employ$ 9 a capacity = :i* tipp+ 7or %>+ tips7 is n cu/om>y4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #fgbd7;d77#a77;,b7 ( su* ,code 7relat+ to ! def9ition ( in=mation returns7 is am5d$ by /rik+ or at ! end ( clause 7xxiv71 by /rik+ & at ! end ( clause 7xxv7 & ins]t+ or1 & by ins]t+ aft] clause 7xxv7 ! foll[+ new clause3 7xvi7 section #fjej,x7a7 7relat+ to returns by cosmetology s]vice provid]s71 & 4 7#b7 ,section #fgbd7;d77#b7 ( su* ,code is am5d$ by /rik+ or at ! end ( subp>agraph 7,,gg71 by /rik+ ! p]iod at ! end ( subp>agraph 7,,hh7 & ins]t+ 1 or1 & by ins]t+ aft] subp>agraph 7,,hh7 ! foll[+ new subp>agraph3 7,,ii7 subsections 7b77#c77;,a77ii7 & 7c7 ( section #fjej,x 7relat+ to cosmetology s]vice provid]s7 ev5 if ! recipi5t is n a payee4 4 7#c7 ,! table ( sections = subp>t ,b ( "p ,,iii ( sub*apt] ,a ( *apt] #fa ( su* ,code is am5d$ by add+ aft] ! item relat+ to section #fjej,w ! foll[+ new item3 ,sec4 #fjej,x4 ,returns relat+ to cosmetology s]vices & in=mation to be provid$ to cosmetologi/s4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to cal5d> ye>s aft] #bjac4