| Workers in the hair and beauty industry face a unique | | | | of that, there's the issue of how to report tips. Not to |
| set of challenges when it comes to taxes. Since a | | | | mention, there is often commission from selling |
| significant portion of the transactions involve cash, | | | | products at the salon. Understanding what all of this |
| many hair stylists fail to report their full income. As a | | | | means is crucial to avoiding trouble with the IRS. |
| result, workers in this industry are often heavily | | | | 2. Keep Detailed Records- If the IRS comes knocking |
| scrutinized by the IRS-whether guilty or not. | | | | at your door, you don't want to be caught unprepared. |
| Because of the problem of underreported income in | | | | For this reason, you need to keep detailed records of |
| the hair and beauty industry, the IRS has created | | | | all income, tips, commission, rent paid for your space, |
| special programs specifically aimed at finding hair | | | | and anything else involving your income as a hair stylist. |
| stylists who don't report their full income. This includes | | | | The more documentation you have on your side, the |
| everything from analyzing your appointment books to | | | | likelier it is that you'll be free from any wrongdoing. A |
| observing the amount of walk-in business you get. In | | | | little record keeping goes a long way to avoiding a lot |
| short, the IRS takes whatever measures necessary to | | | | of trouble. |
| make certain you're paying your full share of taxes. | | | | 3. Get Tax Help- Because IRS audits for hair stylists |
| So, what can you do as a hair stylist to avoid trouble | | | | are so common, the best thing you can do is seek |
| with the IRS? Here are a few tips that will save you a | | | | professional help. Tax resolution specialists have a |
| lot of unwanted stress. | | | | detailed understanding of your situation, and they can |
| 1. Know Your Responsibilities- The hair and beauty | | | | clearly explain what you need to do to track and file |
| industry is one of the most complex when it comes to | | | | your taxes properly. Think of it as an investment. |
| classifying your tax responsibilities. It's difficult to | | | | Spending a little time with a professional now will save |
| determine if a hair stylist is simply an independent | | | | you time, money, and stress later. |
| contractor or an actual employee of the shop. On top | | | | |