The IRS released guidelines on proposed regulations clarifying the “no tax on tips” provision and outlining nearly 70 occupations eligible for claiming deductions on qualified tips. To qualify, tips must be received in cash or an equivalent medium and must be voluntarily given by customers, excluding certain service charges or illegal activities. Comments on the proposed regulations are due by Oct. 23. [IR-2025-92 (Sept. 19, 2025)]
This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.
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