IRS Debt Is Cutting Into Barbers’ Earnings – Clear Start Tax Warns 1099 Shop Owners and Booth Renters About Hidden Tax Liabilities

Self-employed barbers and booth renters face mounting IRS challenges as unreported cash income and unpaid self-employment taxes add up.

IRVINE, CA / ACCESS Newswire / August 25, 2025 / Barbers across the country are discovering that IRS debt is cutting into their take-home pay, according to Clear Start Tax. With many barbers operating as independent contractors, shop owners, or booth renters, the industry’s reliance on cash payments and 1099 income is leaving workers vulnerable to surprise tax bills and growing debt.

“Barbers are some of the hardest-working professionals, but many don’t realize that being self-employed comes with significant tax responsibilities,” said a spokesperson for Clear Start Tax. “Every dollar earned isn’t a dollar kept – taxes still apply, and without withholding, the IRS expects barbers to manage those payments on their own.”

Tax experts note that many barbers fail to set aside funds for quarterly taxes or overlook the self-employment tax, which covers Social Security and Medicare contributions normally split with an employer. Over time, even small underpayments can snowball into serious debt.

“Booth renters and shop owners often get hit the hardest,” the spokesperson added. “They might not only be responsible for their own income taxes but also for expenses tied to running a chair or managing a shop. When those obligations pile up alongside IRS debt, it can threaten both their livelihood and their business.”

Clear Start Tax recommends that barbers keep accurate records of both cash and electronic payments, set aside a portion of every payment for taxes, and explore legitimate deductions to reduce taxable income. For those already facing debt, IRS relief programs may offer a way to regain financial stability.

By answering a few simple questions, taxpayers can find out if they’re eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt.

About Clear Start Tax
Clear Start Tax is a national tax resolution firm dedicated to helping individuals and small businesses resolve IRS and state tax issues. With a team of experienced professionals, the company specializes in tax debt relief, audit defense, and personalized solutions designed to help clients regain financial stability.

About Clear Start Tax
Clear Start Tax is a nationwide tax resolution and relief firm specializing in helping individuals and businesses address IRS and state tax issues. With a team of experienced tax professionals, the company provides tailored strategies for resolving back taxes, negotiating settlements, and achieving long-term compliance.

Need Help With Back Taxes?

Click the link below:
https://clearstarttax.com/qualifytoday/
(888) 710-3533

Contact Information

Clear Start Tax
Corporate Communications Department
tech@clearstarttax.com
(949) 800-4011

SOURCE: Clear Start Tax

View the original press release on ACCESS Newswire