,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #eic  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #af1 #bjai,mr4
 ,*abot 7= himself1 ,ms4 ,velzquez1     
,mrs4 ,radewag51 ,mr4 ,m>%all1 ,mr4     
,lawson ( ,florida1 & ,mr4 ,norman7     
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to simplify income tax    
compliance = small bus9esses1 & = o!r   
purposes4  #a4 ,%ort title2 table (     
cont5ts  7a7 ,%ort title ,?is ,act may  
be cit$ z ! ,small ,bus9ess ,own]s' ,tax
 ,simplification ,act ( #bjai4  7b7     
,table ( cont5ts ,! table ( cont5ts =   
?is ,act is z foll[s3  ,sec4 #a4 ,%ort  
title2 table ( cont5ts4 ,sec4 #b4       
,qu>t]ly report+ ( e/imat$ tax paym5ts4 
,sec4 #c4 ,align+ ! fil+ ?re%olds =     
in=mation report+4 ,sec4 #d4 ,uni=m     
/&>ds = ! use ( electronic signatures = 
?ird-p>ty disclosure au?orizations4     
,sec4 #e4 ,pre-notification te/+4 ,sec4 
#f4 ,treatm5t ( cafet]ia plans =        

employee-own]s4 ,sec4 #g4 ,exclud+ f    
self-employm5t income net e>n+s less ?an
 am\nt requir$ = ,social ,security      
qu>t]s ( cov]age4 ,sec4 #h4 ,all[+ a    
d$uction = c]ta9 heal? insurance co/s = 
self-employm5t tax purposes4 ,sec4 #i4  
,no effect ( volunt>y )hold+ agreem5ts  
on work] classification4 ,sec4 #aj4     
,effect ( volunt>y tra9+ & gr\p disc\nt 
programs on work] classification4  #b4  
,qu>t]ly report+ ( e/imat$ tax paym5ts  
7a7 ,9 g5]al ,! table conta9$ 9 p>agraph
 7#b7 ( section #ffed7;c7 ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$--  7#a7  
by /rik+ ,june #ae & ins]t+ ,july #ae1 &
  7#b7 by /rik+ ,septemb] #ae & ins]t+  
,octob] #ae4  7b7 ,effective date ,!    
am5dm5ts made by ?is section %all apply 
to in/allm5ts due 9 taxable ye>s beg9n+ 
aft] ,decemb] #ca1 #bjai4  #c4 ,align+ !
 fil+ ?re%olds = in=mation report+  7a7 
,increas+ ! doll> ?re%old requir$ = fil+
 a #ajii-,,misc  7#a7 ,9 g5]al          
,subsection 7a7 ( section #fjda ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 

by /rik+ #fjj & ins]t+ #a1ejj4  7#b7    
,inflation adju/m5t ,section #fjda ( su*
 ,code is am5d$ by add+ at ! end !      
foll[+ new subsection3  7h7 ,inflation  
adju/m5t ,9 ! case ( any taxable ye>    
beg9n+ 9 a cal5d> ye> aft] #bjbj1 !     
doll> am\nt 9 subsection 7a7 %all be    
increas$ by an am\nt equal to--  7#a7   
su* doll> am\nt1 multipli$ by  7#b7 !   
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = ! cal5d> ye> 9 :i* !       
taxable ye> beg9s1 det]m9$ by sub/itut+ 
cal5d> ye> #bjai = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii7 !re(4  ,if any     
increase "u ! prec$+ s5t5ce is n a      
multiple ( #ajj1 su* increase %all be   
r\nd$ to ! ne>e/ multiple ( #ajj4  4    
7#c7 ,con=m+ am5dm5t ,! head+ (         
subsection 7a7 ( section #fjda ( su*    
,code is am5d$ by /rik+ ( #fjj or m &   
ins]t+ exce$+ ?re%old4  7b7 ,increas+ ! 
doll> limit = remun]ation = s]vices &   
direct sales  7#a7 ,9 g5]al ,p>agraph   
7#b7 ( section #fjda;,a7a7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by /rik+ 

#fjj & ins]t+ #a1ejj4  7#b7 ,inflation  
adju/m5t ,section #fjda;,a ( su* ,code  
is am5d$ by add+ at ! end ! foll[+ new  
subsection3  7g7 ,inflation adju/m5t ,9 
! case ( any taxable ye> beg9n+ 9 a     
cal5d> ye> aft] #bjbj1 ! doll> am\nt 9  
subsection 7a77#b7 %all be increas$ by  
an am\nt equal to--  7#a7 su* doll>     
am\nt1 multipli$ by  7#b7 ! co/-(-liv+  
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> 9 :i* ! taxable ye> beg9s1
 det]m9$ by sub/itut+ cal5d> ye> #bjai =
 cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7
 !re(4  ,if any increase "u ! prec$+    
s5t5ce is n a multiple ( #ajj1 su*      
increase %all be r\nd$ to ! ne>e/       
multiple ( #ajj4  4  7c7 ,decreas+ !    
doll> ?re%old requir$ = fil+ a #ajii-,k2
 elim9at+ ! transaction ?re%old         
,subsection 7e7 ( section #fjej,w ( su* 
,code is am5d$ by /rik+ only if & all t 
foll[s ?r\gh ! p]iod at ! end & ins]t+  
only if ! am\nt :i* w\ld o!rwise be     
report$ "u subsection 7a77#b7 ) respect 
to su* transactions exce$s ! doll> am\nt

 9 effect = ! taxable ye> "u section    
#fjda7;a744  7d7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
) respect to returns = ye>s beg9n+ aft] 
,decemb] #ca1 #bjai4  #d4 ,uni=m /&>ds =
 ! use ( electronic signatures =        
?ird-p>ty disclosure au?orizations ,n   
lat] ?an #f mon?s aft] ! date ( !       
enactm5t ( ?is section1 ! ,secret>y ( ! 
,treasury %all publi% guidance to       
e/abli% uni=m /&>ds & proc$ures = !     
acceptance ( signatures 9 digital or o!r
 electronic =m = purposes (--  7#a7 any 
reque/ = disclosure ( a taxpay]'s return
 or return in=mation "u section         
#fajc7;c7 ( ! ,int]nal ,rev5ue ,code (  
#aihf1 &  7#b7 any p[] ( attorney       
execut$ by a taxpay]4  #e4              
,pre-notification te/+ ,n lat] ?an #ahj 
days aft] ! date ( enactm5t ( ?is ,act1 
! ,secret>y ( ! ,treasury w ensure t1 = 
any refund or cr$it ( ov]paym5t ( tax "u
 ! ,int]nal ,rev5ue ,code ( #aihf       
transf]r$ to an individual ?r\gh        
electronic fund transf]1 !re is1 prior  

to su* transf]1 a pr5otification te/+ to
 v]ify recipi5t in=mation & assi/ 9     
prev5t+ refund fraud4  #f4 ,treatm5t (  
cafet]ia plans = employee-own]s  7a7 ,9 
g5]al ,subsection 7g7 ( section #abe ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by add+ at ! end ! foll[+ new p>agraph3
  7#e7 ,self-employ$ individuals  7,a7  
,9 g5]al ,not)/&+ section #aje7;g71 =   
purposes ( provid+ qualifi$ b5efits "u a
 cafet]ia plan ( an eligible employ] 7z 
def9$ 9 subsection 7j77#e77 & = purposes
 ( any prohibition on discrim9ation     
7includ+ subsection 7b77 ) respect to a 
cafet]ia plan--  7i7 ! t]m employee     
includes an individual :o is an employee
 )9 ! mean+ ( section #dja7;c77#a7 & any
 individual treat$ z a p>tn] "u section 
#acgb7;a71  7ii7 an individual :o owns !
 entire int]e/ 9 an un9corporat$ trade  
or bus9ess %all be treat$ z 8 own       
employ]1 &  7iii7 a p>tn]%ip %all be    
treat$ z ! employ] ( ea* p>tn] :o is an 
employee )9 ! mean+ ( clause 7i74  7,b7 
,limitation  7i7 ,am\nts exclud$ n to   

exce$ e>n$ income ,9 ! case ( an        
individual treat$ z an employee by      
reason ( subp>agraph 7,a77i71 subsection
 7a7 %all apply to am\nts = an          
individual only to ! ext5t t su* am\nts 
exce$s ! individual's e>n$ income 7z    
def9$ 9 section #dja7;c77#b77 d]iv$ f ! 
trade or bus9ess ) respect to :i* !     
cafet]ia plan is ma9ta9$4  7ii7         
,p>tn]%ips ,?is p>agraph %all apply 9 ! 
case ( any individual treat$ z a p>tn]  
"u section #acgb7;a71 except t1 =       
purposes ( ?is subsection1 su*          
individual's wages 7z def9$ 9 section   
#caba7 f ! ,s corporation %all be treat$
 z su* individual's e>n$ income1 & !re  
%all be su* adju/m5ts 9 ! application ( 
?is subsection z ! ,secret>y may by     
regulations prescribe4  7,c7 ,d5ial (   
d\ble b5efit ,no d$uction or cr$it %all 
be all[$ to an employee "u any section (
 ?is *apt] = any am\nt exclud$ f gross  
income "u subsection 7a7 by reason ( ?is
 p>agraph4  4  7b7 ,simple cafet]ia     
plans ,p>agraph 7#c7 ( section #abe7;j7 

( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by add+ at ! end ! foll[+ new     
subp>agraph3  7,e7 ,alt]native = c]ta9  
plans  7i7 ,9 g5]al ,9 ! case ( a plan t
 cov]s "o or m individuals describ$ 9   
clause 7i7 ( subsection 7g77#e77;,a71 ! 
requirem5ts ( ?is p>agraph %all be      
treat$ z met if ! av]age employ]        
contribution allocable to qualifi$      
b5efits "u ! plan on behalf (           
individuals :o are n qualifi$ employees 
does n exce$ #aej p]c5t ( ! av]age      
employ] contribution allocable to su*   
b5efits on behalf ( individuals :o are  
qualifi$ employees4  7ii7 ,additional   
contributions ,9 ! case ( a plan treat$ 
"u clause 7i7 z meet+ ! requirem5ts (   
?is p>agraph1 subp>agraph 7,c7 %all n   
apply4  4  7c7 ,effective date ,!       
am5dm5t made by ?is section %all apply )
 respect to taxable ye>s beg9n+ aft]    
,decemb] #ca1 #bjai4  #g4 ,exclud+ f    
self-employm5t income net e>n+s less ?an
 am\nt requir$ = ,social ,security      
qu>t]s ( cov]age  7a7 ,9 g5]al ,p>agraph

 7#b7 ( section #adjb7;b7 ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
#djj & ins]t+ ! am\nt requir$ "u section
 #bac7;d7 ( ! ,social ,security ,act = a
 qu>t] ( cov]age = ! cal5d> ye> 9 :i*   
su* taxable ye> began4  7b7             
,self-,employm5t tax returns ,section   
#fjag ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$ by /rik+ #djj & ins]t+ ! am\nt
 requir$ "u section #adjb7;b77#b74  7c7 
,effective date ,! am5dm5ts made by ?is 
section %all apply ) respect to taxable 
ye>s beg9n+ aft] ! date ( ! enactm5t (  
?is ,act4  #h4 ,all[+ a d$uction = c]ta9
 heal? insurance co/s = self-employm5t  
tax purposes  7a7 ,9 g5]al ,subsection  
7l7 ( section #afb ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by /rik+ p>agraph
 7#d74  7b7 ,effective date ,! am5dm5t  
made by ?is section %all apply ) respect
 to taxable ye>s beg9n+ aft] ,decemb]   
#ca1 #bjai4  #i4 ,no effect ( volunt>y  
)hold+ agreem5ts on work] classification
 ,section #cdjb7p7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by add+ at ! end 

! foll[+ new p>agraph3  7#d7 ,work]     
classification ,agreem5ts "u p>agraph   
7#c7 may n be tak5 into acc\nt 9 det]m9+
 :e!r any p>ty to su* agreem5t is an    
employee or an employ] = purposes ( any 
provision ( ?is title4  4  #aj4 ,effect 
( volunt>y tra9+ & gr\p disc\nt programs
 on work] classification  7a7 ,9 g5]al  
,*apt] #gi ( ! ,int]nal ,rev5ue ,code ( 
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #ggjf4 ,effect ( volunt>y
 tra9+ & gr\p disc\nt programs on work] 
classification  7a7 ,9 g5]al ,= purposes
 ( ?is title1 ! det]m9ation ( :e!r an   
individual is an employee %all be made  
)\t reg>d to ! foll[+3  7#a7 ,:e!r su*  
individual is (f]$1 & :e!r su*          
individual accepts1 volunt>y tra9+4     
7#b7 ,:e!r su* individual is (f]$1 or   
takes advantage (1 a disc\nt on goods & 
s]vices available by reason ( su*       
individual p]=m+ s]vices4  7b7          
,regulations ,! ,secret>y %all issue su*
 regulations z ! ,secret>y det]m9es are 
necess>y to c>ry out ! purposes ( ?is   

section4  4  7b7 ,cl]ical am5dm5t ,!    
table ( sections = *apt] #gi ( su* ,code
 is am5d$ by ins]t+ aft] ! item relat+  
to section #ggje ! foll[+3  ,sec4 #ggjf4
 ,effect ( volunt>y tra9+ & gr\p disc\nt
 programs on work] classification4  4