Some advocates for the restaurant industry have been lobbying to change the way service fees are treated. They’d like to see automatic gratuities included as tips. The Culinary Union in Nevada, for example, 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 the tips deduction.