Globally the tattoo business is over a billion dollar a year industry and is projected to grow to 3.5 billion by 2029.  The IRS has not ignored the tattoo industry. 

The trend of offering the W2 option probably began in a state like California where tax and labor laws are very strict.

The days of flying under the radar in the fringes of society for tattoo artists are long gone.  As the entire world moves more towards a cashless society and governments experiment with Central Bank Digital Currencies, the chances of tattooing to remain off grid are diminishing rapidly.