Introduced in Senate — S. 2780

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.

Section 1. Short title

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

For purposes of section 224(d)(2)(A) of the Internal Revenue Code of 1986—

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.