Small Business Tax Fairness and Compliance Simplification Act
1/23/2024, 8:15 AMSummary of Bill HR 45
Bill 118 hr 45, also known as the Small Business Tax Fairness and Compliance Simplification Act, aims to make tax compliance easier for small businesses in the United States. The bill includes provisions to simplify the tax code for small businesses, reduce the burden of tax compliance, and ensure that small businesses are treated fairly under the tax laws.One key provision of the bill is the simplification of tax filing requirements for small businesses. The bill proposes to streamline the tax filing process for small businesses, making it easier for them to comply with tax laws and regulations. This would help small businesses save time and money on tax compliance, allowing them to focus on growing their businesses and creating jobs.
Another important aspect of the bill is the promotion of tax fairness for small businesses. The bill includes measures to ensure that small businesses are not unfairly targeted by the tax authorities and are treated fairly under the tax laws. This would help level the playing field for small businesses and prevent them from being at a disadvantage compared to larger corporations. Overall, the Small Business Tax Fairness and Compliance Simplification Act aims to make tax compliance easier and fairer for small businesses in the United States. By simplifying the tax code and promoting tax fairness, the bill seeks to support small businesses and help them thrive in the competitive business environment.
Congressional Summary of HR 45
Small Business Tax Fairness and Compliance Simplification Act
This bill expands the tax credit for a portion of the employer-paid Social Security taxes for employee cash tips to include beauty service establishments. (Under current law, the credit is limited to tips received for providing, serving, or delivering food or beverages.)
The credit applies to tips received in connection with providing beauty services to a customer or client if tipping employees who provide the service is customary. Beauty services include barbering and hair care, nail care, esthetics, and body and spa treatments.
The bill also (1) establishes an employer tip reporting safe harbor for beauty service establishments, and (2) specifies reporting requirements for income received from renting space to individuals who provide beauty services.
The employer tip reporting safe harbor for beauty service establishments provides an exemption from certain Internal Revenue Service tip examinations for employers who meet certain requirements for educational programs, reporting procedures, compliance with tax law, and recordkeeping.
