,i #aafth ,,congress #ast ,session ,h4 ,r4 #eic ,,in ,,the ,,house ,,of ,,representatives ,january #af1 #bjai,mr4 ,chabot 7for himself1 ,ms4 ,velzquez1 ,mrs4 ,radewagen1 ,mr4 ,marshall1 ,mr4 ,lawson of ,florida1 and ,mr4 ,norman7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to simplify income tax compliance for small businesses1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,small ,business ,owners' ,tax ,simplification ,act of #bjai4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,quarterly reporting of estimated tax payments4 ,sec4 #c4 ,aligning the filing thresholds for information reporting4 ,sec4 #d4 ,uniform standards for the use of electronic signatures for third-party disclosure authorizations4 ,sec4 #e4 ,pre-notification testing4 ,sec4 #f4 ,treatment of cafeteria plans for employee-owners4 ,sec4 #g4 ,excluding from self-employment income net earnings less than amount required for ,social ,security quarters of coverage4 ,sec4 #h4 ,allowing a deduction for certain health insurance costs for self-employment tax purposes4 ,sec4 #i4 ,no effect of voluntary withholding agreements on worker classification4 ,sec4 #aj4 ,effect of voluntary training and group discount programs on worker classification4 #b4 ,quarterly reporting of estimated tax payments 7a7 ,in general ,the table contained in paragraph 7#b7 of section #ffed7;c7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking ,june #ae and inserting ,july #ae1 and 7#b7 by striking ,september #ae and inserting ,october #ae4 7b7 ,effective date ,the amendments made by this section shall apply to installments due in taxable years beginning after ,december #ca1 #bjai4 #c4 ,aligning the filing thresholds for information reporting 7a7 ,increasing the dollar threshold required for filing a #ajii-,,misc 7#a7 ,in general ,subsection 7a7 of section #fjda of the ,internal ,revenue ,code of #aihf is amended by striking #fjj and inserting #a1ejj4 7#b7 ,inflation adjustment ,section #fjda of such ,code is amended by adding at the end the following new subsection3 7h7 ,inflation adjustment ,in the case of any taxable year beginning in a calendar year after #bjbj1 the dollar amount in subsection 7a7 shall be increased by an amount equal to-- 7#a7 such dollar amount1 multiplied by 7#b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjai for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,if any increase under the preceding sentence is not a multiple of #ajj1 such increase shall be rounded to the nearest multiple of #ajj4 4 7#c7 ,conforming amendment ,the heading of subsection 7a7 of section #fjda of such ,code is amended by striking of #fjj or more and inserting exceeding threshold4 7b7 ,increasing the dollar limit for remuneration for services and direct sales 7#a7 ,in general ,paragraph 7#b7 of section #fjda;,a7a7 of the ,internal ,revenue ,code of #aihf is amended by striking #fjj and inserting #a1ejj4 7#b7 ,inflation adjustment ,section #fjda;,a of such ,code is amended by adding at the end the following new subsection3 7g7 ,inflation adjustment ,in the case of any taxable year beginning in a calendar year after #bjbj1 the dollar amount in subsection 7a77#b7 shall be increased by an amount equal to-- 7#a7 such dollar amount1 multiplied by 7#b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjai for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,if any increase under the preceding sentence is not a multiple of #ajj1 such increase shall be rounded to the nearest multiple of #ajj4 4 7c7 ,decreasing the dollar threshold required for filing a #ajii-,k2 eliminating the transaction threshold ,subsection 7e7 of section #fjej,w of such ,code is amended by striking only if and all that follows through the period at the end and inserting only if the amount which would otherwise be reported under subsection 7a77#b7 with respect to such transactions exceeds the dollar amount in effect for the taxable year under section #fjda7;a744 7d7 ,effective date ,the amendments made by this section shall apply with respect to returns for years beginning after ,december #ca1 #bjai4 #d4 ,uniform standards for the use of electronic signatures for third-party disclosure authorizations ,not later than #f months after the date of the enactment of this section1 the ,secretary of the ,treasury shall publish guidance to establish uniform standards and procedures for the acceptance of signatures in digital or other electronic form for purposes of-- 7#a7 any request for disclosure of a taxpayer's return or return information under section #fajc7;c7 of the ,internal ,revenue ,code of #aihf1 and 7#b7 any power of attorney executed by a taxpayer4 #e4 ,pre-notification testing ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of the ,treasury will ensure that1 for any refund or credit of overpayment of tax under the ,internal ,revenue ,code of #aihf transferred to an individual through electronic fund transfer1 there is1 prior to such transfer1 a prenotification testing to verify recipient information and assist in preventing refund fraud4 #f4 ,treatment of cafeteria plans for employee-owners 7a7 ,in general ,subsection 7g7 of section #abe of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#e7 ,self-employed individuals 7,a7 ,in general ,notwithstanding section #aje7;g71 for purposes of providing qualified benefits under a cafeteria plan of an eligible employer 7as defined in subsection 7j77#e77 and for purposes of any prohibition on discrimination 7including subsection 7b77 with respect to a cafeteria plan-- 7i7 the term employee includes an individual who is an employee within the meaning of section #dja7;c77#a7 and any individual treated as a partner under section #acgb7;a71 7ii7 an individual who owns the entire interest in an unincorporated trade or business shall be treated as his own employer1 and 7iii7 a partnership shall be treated as the employer of each partner who is an employee within the meaning of clause 7i74 7,b7 ,limitation 7i7 ,amounts excluded not to exceed earned income ,in the case of an individual treated as an employee by reason of subparagraph 7,a77i71 subsection 7a7 shall apply to amounts for an individual only to the extent that such amounts exceeds the individual's earned income 7as defined in section #dja7;c77#b77 derived from the trade or business with respect to which the cafeteria plan is maintained4 7ii7 ,partnerships ,this paragraph shall apply in the case of any individual treated as a partner under section #acgb7;a71 except that1 for purposes of this subsection1 such individual's wages 7as defined in section #caba7 from the ,s corporation shall be treated as such individual's earned income1 and there shall be such adjustments in the application of this subsection as the ,secretary may by regulations prescribe4 7,c7 ,denial of double benefit ,no deduction or credit shall be allowed to an employee under any section of this chapter for any amount excluded from gross income under subsection 7a7 by reason of this paragraph4 4 7b7 ,simple cafeteria plans ,paragraph 7#c7 of section #abe7;j7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,e7 ,alternative for certain plans 7i7 ,in general ,in the case of a plan that covers one or more individuals described in clause 7i7 of subsection 7g77#e77;,a71 the requirements of this paragraph shall be treated as met if the average employer contribution allocable to qualified benefits under the plan on behalf of individuals who are not qualified employees does not exceed #aej percent of the average employer contribution allocable to such benefits on behalf of individuals who are qualified employees4 7ii7 ,additional contributions ,in the case of a plan treated under clause 7i7 as meeting the requirements of this paragraph1 subparagraph 7,c7 shall not apply4 4 7c7 ,effective date ,the amendment made by this section shall apply with respect to taxable years beginning after ,december #ca1 #bjai4 #g4 ,excluding from self-employment income net earnings less than amount required for ,social ,security quarters of coverage 7a7 ,in general ,paragraph 7#b7 of section #adjb7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking #djj and inserting the amount required under section #bac7;d7 of the ,social ,security ,act for a quarter of coverage for the calendar year in which such taxable year began4 7b7 ,self-,employment tax returns ,section #fjag of the ,internal ,revenue ,code of #aihf is amended by striking #djj and inserting the amount required under section #adjb7;b77#b74 7c7 ,effective date ,the amendments made by this section shall apply with respect to taxable years beginning after the date of the enactment of this ,act4 #h4 ,allowing a deduction for certain health insurance costs for self-employment tax purposes 7a7 ,in general ,subsection 7l7 of section #afb of the ,internal ,revenue ,code of #aihf is amended by striking paragraph 7#d74 7b7 ,effective date ,the amendment made by this section shall apply with respect to taxable years beginning after ,december #ca1 #bjai4 #i4 ,no effect of voluntary withholding agreements on worker classification ,section #cdjb7p7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#d7 ,worker classification ,agreements under paragraph 7#c7 may not be taken into account in determining whether any party to such agreement is an employee or an employer for purposes of any provision of this title4 4 #aj4 ,effect of voluntary training and group discount programs on worker classification 7a7 ,in general ,chapter #gi of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ggjf4 ,effect of voluntary training and group discount programs on worker classification 7a7 ,in general ,for purposes of this title1 the determination of whether an individual is an employee shall be made without regard to the following3 7#a7 ,whether such individual is offered1 and whether such individual accepts1 voluntary training4 7#b7 ,whether such individual is offered1 or takes advantage of1 a discount on goods and services available by reason of such individual performing services4 7b7 ,regulations ,the ,secretary shall issue such regulations as the ,secretary determines are necessary to carry out the purposes of this section4 4 7b7 ,clerical amendment ,the table of sections for chapter #gi of such ,code is amended by inserting after the item relating to section #ggje the following3 ,sec4 #ggjf4 ,effect of voluntary training and group discount programs on worker classification4 4