Some advocates for the restaurant industries have been lobbying for a change. They believe automatic gratuities should be treated as tips. The Culinary Union in Nevada submitted formal recommendations to the U.S. Department of the Treasury and the IRS that automatic gratuities and suggested tips both be treated as eligible tip income. Separately, several members of Congress from Nevada had asked Treasury Secretary Scott Bessent to ensure that automatic gratuities are deemed eligible for deduction of tips.
