Cosmetology Tax Fairness and Compliance Act of 2001

The Cosmetology Tax Fairness and Compliance Act of 2001 (S. 879) was designed to extend a specific federal tax credit to owners of hair salons and similar establishments. Under this bill, salon owners would be eligible for a tax credit equal to the amount of Social Security taxes they pay on the tips earned by their employees, a benefit already available to the restaurant industry. Additionally, the bill would have established new reporting requirements for salon owners to provide more detailed information to the IRS regarding the income and tips received by their staff.