Restaurants, Hotels Spar Over Limits of Trump’s Tips Tax Break

Business groups and other stakeholders are at odds over how the IRS’s proposed rules on the GOP tax law’s new tax break for tips treats automatic gratuities.

The IRS held a public hearing on the rules Thursday via teleconference, a day after written comments were due to the agency.

The new break was one of President Donald Trump’s major campaign promises in 2024. The GOP tax law, enacted in July, provides that tips are only eligible for the tax break if they’re paid voluntarily. The IRS’s proposed rules, released in September, provide in their ...