S. 2780
119th CONGRESS 1st Session
To clarify the treatment of certain tips for purposes of the tax deduction for qualified tips.
IN THE SENATE OF THE UNITED STATES · September 11, 2025 · Sponsor: Mr. Gallego · Committee: Committee on Finance
Table of contents
SEC. 1. Short title
- This Act may be cited as the No Tax on Large Party Tips Act.
SEC. 2. Treatment of certain tips
- (a) In general
- For purposes of of the Internal Revenue Code of 1986— section 224(d)(2)(A)
- In general
- any tip automatically added to a customer’s bill at the time of payment, and
- any tip that is a suggested tip prompted by a business,
- shall be treated as paid voluntarily.