# 119-hr-2603: Small Business Tax Fairness and Compliance Simplification Act

119-hr-2603, Small Business Tax Fairness and Compliance Simplification Act, is a 119th Congress bill sponsored by Rep. LaHood, Darin [R-IL-16] (R-IL); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-hr-2603
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-2603
- Congress: 119
- Title: Small Business Tax Fairness and Compliance Simplification Act
- Status: introduced
- Introduced: 2025-04-02
- Sponsor: Rep. LaHood, Darin [R-IL-16] (R-IL)
- Cosponsors: 6
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

**Extending the employer tip credit to beauty services** while adding a tip-reporting safe harbor and new space-rental reporting to simplify tax compliance for salons and independent stylists. - Beauty workers would benefit if employers claim the tip credit for barbering, hair care, nail care, esthetics, and body and spa treatments where tipping is customary. The credit for beauty services would apply only if tips counted exceed 15% of the business's beauty-service gross receipts. - Salon and spa employers could avoid IRS tip examinations for beauty-service tips by running employee education, providing quarterly training, requiring monthly tip reports of at least $20, complying with tax filing and payment rules, and keeping employee and receipts records for 4 years. - Businesses that pay two or more beauty providers $600 or more in a year for leased space would need to file an information return and give each recipient a statement by January 31 showing names, TINs, total payments, and payment dates.

## Cosponsors (6)

- Rep. DelBene, Suzan K. [D-WA-1] (D-WA), 2025-04-02T00:00:00.000Z
- Rep. Carter, John R. [R-TX-31] (R-TX), 2025-04-14T00:00:00.000Z
- Rep. Cuellar, Henry [D-TX-28] (D-TX), 2025-04-24T00:00:00.000Z
- Rep. Kustoff, David [R-TN-8] (R-TN), 2025-04-28T00:00:00.000Z
- Rep. Bell, Wesley [D-MO-1] (D-MO), 2025-04-28T00:00:00.000Z
- Rep. Mrvan, Frank J. [D-IN-1] (D-IN), 2025-04-30T00:00:00.000Z

## Provisions PRIA read

- IRS tip audit safe harbor for salons: benefit, low. This bill would create a safe harbor for beauty-service tips. If salon employers train new hires (verbal and written) and give quarterly training, collect monthly tip reports of at least $20, file and pay all taxes, and keep records for four years, the IRS would not start an employer tip exam for t…
- New reporting for salon booth rentals: cost, low. This bill would require people who rent space to two or more beauty workers to file an information return if each pays $600 or more in a year. You would report each worker’s name, address, taxpayer ID, total paid, and payment dates. You would also give each worker a statement by January 31 of the n…
- Tip credit for salons with 15% rule: mixed, high. This bill would extend the employer tip credit to beauty services. It would only apply if yearly tips from beauty work are over 15% of that year’s beauty-service receipts. Beauty services would include barbering and hair care, nail care, esthetics, and body and spa treatments. The food and drink pa…

## Related bills

- 119-hr-909: Crime Victims Fund Stabilization Act of 2025
- 119-hr-1262: Mikaela Naylon Give Kids a Chance Act
- 119-hr-1422: Enhanced Iran Sanctions Act of 2025
- 119-hr-9250: Great American Outdoors Act 250
- 119-hr-1340: More Homes on the Market Act
- 119-hr-4382: America’s Olympic and Paralympic Games Commemorative Coins Act

## Sources
- [119-hr-2603 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/2603)

## Related
- [119-hr-909: Crime Victims Fund Stabilization Act of 2025](https://policyrisk.com/legislation/119-hr-909)
- [119-hr-1262: Mikaela Naylon Give Kids a Chance Act](https://policyrisk.com/legislation/119-hr-1262)
- [119-hr-1422: Enhanced Iran Sanctions Act of 2025](https://policyrisk.com/legislation/119-hr-1422)
- [119-hr-9250: Great American Outdoors Act 250](https://policyrisk.com/legislation/119-hr-9250)
- [119-hr-1340: More Homes on the Market Act](https://policyrisk.com/legislation/119-hr-1340)
- [119-hr-4382: America’s Olympic and Paralympic Games Commemorative Coins Act](https://policyrisk.com/legislation/119-hr-4382)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-2603 (as of 2026-04-21).