119th CONGRESS
1st Session
S. 2780


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

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.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 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 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.