,i  #aagth ,,congress  #ast ,session    
,h4 ,r4 #hba  ,,in ,,the ,,house ,,of   
,,representatives  ,february #d1        
#bjba,mr4 ,la,hood 7for himself and ,ms4
 ,del,bene7 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 reporting   
requirements1 promote tax compliance1   
and reduce tip reporting compliance     
burdens in the beauty service industry4 
#a4 ,short title ,this ,act may be cited
 as the ,small ,business ,tax ,fairness 
and ,compliance ,simplification ,act4   
#b4 ,extension of credit for portion of 
employer social security taxes paid with
 respect to employee tips to beauty     
service establishments  7a7 ,extension  
of tip credit to beauty service business
  7#a7 ,in general ,section             
#de;,b7b77#b7 of such ,code is amended  
to read as follows3  7#b7 ,application  
only to certain lines of business ,in   
applying paragraph 7#a7 there shall be  

taken into account only tips received   
from customers or clients in connection 
with the following services3 7,a7 ,the  
providing1 delivering1 or serving of    
food or beverages for consumption1 if   
the tipping of employees delivering or  
serving food or beverages by customers  
is customary4  7,b7 ,the providing of   
beauty services to a customer or client 
if the tipping of employees providing   
such services is customary4  4  7#b7    
,beauty service defined ,section #de;,b 
of such ,code is amended by adding at   
the end the following new subsection3   
7e7 ,beauty service ,for purposes of    
this section1 the term beauty service   
means any of the following3 7#a7        
,barbering and hair care4  7#b7 ,nail   
care4  7#c7 ,esthetics4  7#d7 ,body and 
spa treatments4  4  7b7 ,credit         
determined with respect to minimum wage 
in effect ,section #de;,b7b77#a77;,b7 of
 the ,internal ,revenue ,code of #aihf1 
is amended-- 7#a7 by striking as in     
effect on ,january #a1 #bjjg1 and2 and  

7#b7 by inserting 1 and in the case of  
food or beverage establishments1 as in  
effect on ,january #a1 #bjjg after      
without regard to section #c7m7 of such 
,act4  7c7 ,effective date ,the         
amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjbj4  #c4 ,employer tip
 reporting safe harbor  7a7 ,in general 
,section #caba7q7 of the ,internal      
,revenue ,code of #aihf is amended--    
7#a7 by striking so much as precedes of 
this chapter and inserting the          
following3  7q7 ,tips included for both 
employee and employer taxes  7#a7 ,in   
general ,for purposes  2 and  7#b7 by   
adding at the end the following new     
paragraph3  7#b7 ,tip program safe      
harbor ,in the case of an employer who  
employs one or more employees who       
receive tips in the course of such      
employment which are attributable to the
 performance of beauty services 7as such
 term is defined in section #de;,b7 are 
considered remuneration for such        

employment under this section1 no ,,irs 
tip examination with respect to such    
employer shall be initiated 7except in  
the case of a tip examination of a      
current or former employee7 if the      
employer-- 7,a7 establishes an          
educational program regarding applicable
 laws relating to proper reporting of   
tips received by employees for-- 7i7 new
 employees1 which shall include both    
verbal explanation and written          
materials1 and  7ii7 existing employees1
 which shall be conducted quarterly1    
7,b7 establishes procedures for tipped  
employees to provide monthly reporting  
of cash and charged services and related
 tip income of at least #bj under       
section #fjec7;a71  7,c7 complies with  
all applicable ,federal tax law         
requirements applicable to employers for
 purposes of filing returns1 and        
collection and payment of taxes imposed1
 with respect to tip income received by 
employees1 and  7,d7 maintains employee 
records related to-- 7i7 contact        

information for such employees1 and     
7ii7 gross receipts from any services   
subject to tipping1 and charge receipts 
for such services1 for a period of not  
less than #d calendar years after the   
calendar year to which the records      
relate4  4  7b7 ,effective date ,the    
amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjba4  #d4 ,information 
reporting of income from space rentals  
in the beauty service industry  7a7 ,in 
general ,subpart ,b of part ,,iii of    
subchapter ,a of chapter #fa of the     
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new section3  #fjej,z4        
,returns relating to income from certain
 rentals of space in the beauty service 
industry  7a7 ,requirement of reporting 
,any person who1 in the course of a     
trade or business and for any calendar  
year1 receives rental payments from two 
or more individuals providing beauty    
services 7as defined in section         

#de;,b7e77 aggregating #fjj or more each
 for the lease of space to provide such 
services to third-party patrons shall   
make the return described in subsection 
7b7 with respect to each person from    
whom such rent was so received at such  
time as the ,secretary may by           
regulations prescribe4  7b7 ,return ,a  
return is described in this subsection  
if such return-- 7#a7 is in such form as
 the ,secretary may prescribe1 and  7#b7
 contains-- 7,a7 the name1 address1 and 
,,tin of each person from whom a rental 
payment described in subsection 7a7 was 
received during the calendar year1  7,b7
 the aggregate amount of such payments  
received by such person during such     
calendar year and the date and amount of
 each such payment1 and  7,c7 such other
 information as the ,secretary may      
require4  7c7 ,statement ,to be         
furnished to persons with respect to    
whom information is required  7#a7 ,in  
general ,every person required to make a
 return under subsection 7a7 shall      

furnish to each person whose name is    
required to be set forth in such return 
a written statement showing-- 7,a7 the  
name1 address1 and phone number of the  
information contact of the person       
required to make such a return1 and     
7,b7 the aggregate amount of payments to
 the person required to be shown on the 
return4  7#b7 ,furnishing of information
 ,the written statement required under  
paragraph 7#a7 shall be furnished to the
 person on or before ,january #ca of the
 year following the calendar year for   
which the return under subsection 7a7 is
 required to be made4  7d7 ,regulations 
and guidance ,the ,secretary may        
prescribe such regulations and other    
guidance as may be appropriate or       
necessary to carry out the purpose of   
this subsection1 including rules to     
prevent duplicative reporting of        
transactions4  4  7b7 ,clerical         
amendment ,the table of sections for    
subchapter ,a of chapter #fa of such    
,code is amended by adding at the end   

the following new item3  ,sec4 #fjej,z4 
,returns relating to income from certain
 rentals of space in the beauty service 
industry4  4  7c7 ,effective date ,the  
amendments made by this section shall   
apply to payments made after ,december  
#ca1 #bjba4