Us Congress 2023-2024 Regular Session

Us Congress House Bill HB45 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	118THCONGRESS
3	3	1
4	4	STSESSION H. R. 45
5	5	To amend the Internal Revenue Code of 1986 to simplify reporting require-
6	6	ments, promote tax compliance, and reduce tip reporting compliance
7	7	burdens in the beauty service industry.
8	8	IN THE HOUSE OF REPRESENTATIVES
9	9	JANUARY9, 2023
10	10	Mr. L
11	11	AHOOD(for himself and Ms. DELBENE) introduced the following bill;
12	12	which was referred to the Committee on Ways and Means
13	13	A BILL
14	14	To amend the Internal Revenue Code of 1986 to simplify
15	15	reporting requirements, promote tax compliance, and re-
16	16	duce tip reporting compliance burdens in the beauty serv-
17	17	ice industry.
18	18	Be it enacted by the Senate and House of Representa-1
19	19	tives of the United States of America in Congress assembled, 2
20	20	SECTION 1. SHORT TITLE. 3
21	21	This Act may be cited as the ‘‘Small Business Tax 4
22	22	Fairness and Compliance Simplification Act’’. 5
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25	25	•HR 45 IH
26	26	SEC. 2. EXTENSION OF CREDIT FOR PORTION OF EM-1
27	27	PLOYER SOCIAL SECURITY TAXES PAID WITH 2
28	28	RESPECT TO EMPLOYEE TIPS TO BEAUTY 3
29	29	SERVICE ESTABLISHMENTS. 4
30	30	(a) E
31	31	XTENSION OFTIPCREDIT TOBEAUTYSERVICE 5
32	32	B
33	33	USINESS.— 6
34	34	(1) I
35	35	N GENERAL.—Section 45B(b)(2) of such 7
36	36	Code is amended to read as follows: 8
37	37	‘‘(2) A
38	38	PPLICATION ONLY TO CERTAIN LINES OF 9
39	39	BUSINESS.—In applying paragraph (1) there shall 10
40	40	be taken into account only tips received from cus-11
41	41	tomers or clients in connection with the following 12
42	42	services: 13
43	43	‘‘(A) The providing, delivering, or serving 14
44	44	of food or beverages for consumption, if the tip-15
45	45	ping of employees delivering or serving food or 16
46	46	beverages by customers is customary. 17
47	47	‘‘(B) The providing of beauty services to a 18
48	48	customer or client if the tipping of employees 19
49	49	providing such services is customary.’’. 20
50	50	(2) B
51	51	EAUTY SERVICE DEFINED .—Section 45B 21
52	52	of such Code is amended by adding at the end the 22
53	53	following new subsection: 23
54	54	‘‘(e) B
55	55	EAUTYSERVICE.—For purposes of this sec-24
56	56	tion, the term ‘beauty service’ means any of the following: 25
57	57	‘‘(1) Barbering and hair care. 26
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60	60	•HR 45 IH
61	61	‘‘(2) Nail care. 1
62	62	‘‘(3) Esthetics. 2
63	63	‘‘(4) Body and spa treatments.’’. 3
64	64	(b) C
65	65	REDITDETERMINEDWITHRESPECT TOMIN-4
66	66	IMUMWAGE INEFFECT.—Section 45B(b)(1)(B) of the 5
67	67	Internal Revenue Code of 1986, is amended— 6
68	68	(1) by striking ‘‘as in effect on January 1, 7
69	69	2007, and’’; and 8
70	70	(2) by inserting ‘‘, and in the case of food or 9
71	71	beverage establishments, as in effect on January 1, 10
72	72	2007’’ after ‘‘without regard to section 3(m) of such 11
73	73	Act’’. 12
74	74	(c) E
75	75	FFECTIVEDATE.—The amendments made by 13
76	76	this section shall apply to taxable years beginning after 14
77	77	December 31, 2022. 15
78	78	SEC. 3. EMPLOYER TIP REPORTING SAFE HARBOR. 16
79	79	(a) I
80	80	NGENERAL.—Section 3121(q) of the Internal 17
81	81	Revenue Code of 1986 is amended— 18
82	82	(1) by striking so much as precedes ‘‘of this 19
83	83	chapter’’ and inserting the following: 20
84	84	‘‘(q) T
85	85	IPSINCLUDED FOR BOTHEMPLOYEE AND 21
86	86	E
87	87	MPLOYERTAXES.— 22
88	88	‘‘(1) I
89	89	N GENERAL.—For purposes’’; and 23
90	90	(2) by adding at the end the following new 24
91	91	paragraph: 25
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95	95	‘‘(2) TIP PROGRAM SAFE HARBOR .—In the case 1
96	96	of an employer who employs one or more employees 2
97	97	who receive tips in the course of such employment 3
98	98	which are attributable to the performance of beauty 4
99	99	services (as such term is defined in section 45B) are 5
100	100	considered remuneration for such employment under 6
101	101	this section, no IRS tip examination with respect to 7
102	102	such employer shall be initiated (except in the case 8
103	103	of a tip examination of a current or former em-9
104	104	ployee) if the employer— 10
105	105	‘‘(A) establishes an educational program 11
106	106	regarding applicable laws relating to proper re-12
107	107	porting of tips received by employees for— 13
108	108	‘‘(i) new employees, which shall in-14
109	109	clude both verbal explanation and written 15
110	110	materials, and 16
111	111	‘‘(ii) existing employees, which shall 17
112	112	be conducted quarterly, 18
113	113	‘‘(B) establishes procedures for tipped em-19
114	114	ployees to provide monthly reporting of cash 20
115	115	and charged services and related tip income of 21
116	116	at least $20 under section 6053(a), 22
117	117	‘‘(C) complies with all applicable Federal 23
118	118	tax law requirements applicable to employers 24
119	119	for purposes of filing returns, and collection 25
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122	122	•HR 45 IH
123	123	and payment of taxes imposed, with respect to 1
124	124	tip income received by employees, and 2
125	125	‘‘(D) maintains employee records related 3
126	126	to— 4
127	127	‘‘(i) contact information for such em-5
128	128	ployees, and 6
129	129	‘‘(ii) gross receipts from any services 7
130	130	subject to tipping, and charge receipts for 8
131	131	such services, for a period of not less than 9
132	132	4 calendar years after the calendar year to 10
133	133	which the records relate.’’. 11
134	134	(b) E
135	135	FFECTIVEDATE.—The amendments made by 12
136	136	this section shall apply to taxable years beginning after 13
137	137	December 31, 2023. 14
138	138	SEC. 4. INFORMATION REPORTING OF INCOME FROM 15
139	139	SPACE RENTALS IN THE BEAUTY SERVICE IN-16
140	140	DUSTRY. 17
141	141	(a) I
142	142	NGENERAL.—Subpart B of part III of sub-18
143	143	chapter A of chapter 61 of the Internal Revenue Code of 19
144	144	1986 is amended by adding at the end the following new 20
145	145	section: 21
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148	148	•HR 45 IH
149	149	‘‘SEC. 6050Z. RETURNS RELATING TO INCOME FROM CER-1
150	150	TAIN RENTALS OF SPACE IN THE BEAUTY 2
151	151	SERVICE INDUSTRY. 3
152	152	‘‘(a) R
153	153	EQUIREMENT OF REPORTING.—Any person 4
154	154	who, in the course of a trade or business and for any cal-5
155	155	endar year, receives rental payments from two or more 6
156	156	individuals providing beauty services (as defined in section 7
157	157	45B(e)) aggregating $600 or more each for the lease of 8
158	158	space to provide such services to third-party patrons shall 9
159	159	make the return described in subsection (b) with respect 10
160	160	to each person from whom such rent was so received at 11
161	161	such time as the Secretary may by regulations prescribe. 12
162	162	‘‘(b) R
163	163	ETURN.—A return is described in this sub-13
164	164	section if such return— 14
165	165	‘‘(1) is in such form as the Secretary may pre-15
166	166	scribe, and 16
167	167	‘‘(2) contains— 17
168	168	‘‘(A) the name, address, and TIN of each 18
169	169	person from whom a rental payment described 19
170	170	in subsection (a) was received during the cal-20
171	171	endar year, 21
172	172	‘‘(B) the aggregate amount of such pay-22
173	173	ments received by such person during such cal-23
174	174	endar year and the date and amount of each 24
175	175	such payment, and 25
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178	178	•HR 45 IH
179	179	‘‘(C) such other information as the Sec-1
180	180	retary may require. 2
181	181	‘‘(c) S
182	182	TATEMENTTOBEFURNISHED TOPERSONS 3
183	183	W
184	184	ITHRESPECT TOWHOMINFORMATIONISREQUIRED.— 4
185	185	‘‘(1) I
186	186	N GENERAL.—Every person required to 5
187	187	make a return under subsection (a) shall furnish to 6
188	188	each person whose name is required to be set forth 7
189	189	in such return a written statement showing— 8
190	190	‘‘(A) the name, address, and phone num-9
191	191	ber of the information contact of the person re-10
192	192	quired to make such a return, and 11
193	193	‘‘(B) the aggregate amount of payments to 12
194	194	the person required to be shown on the return. 13
195	195	‘‘(2) F
196	196	URNISHING OF INFORMATION .—The 14
197	197	written statement required under paragraph (1) 15
198	198	shall be furnished to the person on or before Janu-16
199	199	ary 31 of the year following the calendar year for 17
200	200	which the return under subsection (a) is required to 18
201	201	be made. 19
202	202	‘‘(d) R
203	203	EGULATIONS AND GUIDANCE.—The Secretary 20
204	204	may prescribe such regulations and other guidance as may 21
205	205	be appropriate or necessary to carry out the purpose of 22
206	206	this subsection, including rules to prevent duplicative re-23
207	207	porting of transactions.’’. 24
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211	211	(b) CLERICALAMENDMENT.—The table of sections 1
212	212	for subchapter A of chapter 61 of such Code is amended 2
213	213	by adding at the end the following new item: 3
214	214	‘‘Sec. 6050Z. Returns relating to income from certain rentals of space in the
215	215	beauty service industry.’’.
216	216	(c) EFFECTIVEDATE.—The amendments made by 4
217	217	this section shall apply to payments made after December 5
218	218	31, 2023. 6
219	219	Æ
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