119 S2780 IS: No Tax on Large Party Tips Act U.S. Senate 2025-09-11 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II 119th CONGRESS 1st Session S. 2780 IN THE SENATE OF THE UNITED STATES September 11, 2025 Mr. Gallego introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To clarify the treatment of certain tips for purposes of the tax deduction for qualified tips.

1.

Short title

This Act may be cited as the No Tax on Large Party Tips Act.

2.

Treatment of certain tips

(a)

In general

For purposes of section 224(d)(2)(A) of the Internal Revenue Code of 1986— (1) any tip automatically added to a customer’s bill at the time of payment, and (2) any tip that is a suggested tip prompted by a business, shall be treated as paid voluntarily.