What does Preamble of No Tax on Large Party Tips Act do?

This bill, formally titled 'To clarify the treatment of certain tips for purposes of the tax deduction for qualified tips,' aims to clarify the tax treatment of certain tips. The bill was introduced in the Senate on September 11, 2025, by Mr. Gallego.

What does SHORT TITLE. of No Tax on Large Party Tips Act do?

This bill is formally titled the 'No Tax on Large Party Tips Act'.

What does TREATMENT OF CERTAIN TIPS. of No Tax on Large Party Tips Act do?

This section modifies the treatment of certain tips for purposes of section 224(d)(2)(A) of the Internal Revenue Code of 1986. Tips automatically added to a customer's bill at the time of payment are treated as paid voluntarily. Tips that are suggested by a business are also treated as paid voluntarily.

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No Tax on Large Party Tips Act

Last updated: 9/11/2025 · Introduced: 9/11/2025

Author: Ruben Gallego (D-AZ)

TL;DR (AI)

This bill clarifies that tips automatically added to a customer's bill are considered voluntarily paid for tax purposes.
The bill also establishes that tips suggested by a business are treated as voluntarily paid.
This legislation modifies the Internal Revenue Code's treatment of certain tips under section 224(d)(2)(A).

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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