IRS Issues Final Rule Amending Income Tax Regulations on Qualified Tips Deduction

The IRS has issued its final rule amending income tax regulations relating to occupations that customarily and regularly received tips, as a result of Public Law 119-21, the One Big Beautiful Bill Act (OBBBA). These final regulations amend I.R.C. §224 and include the definition of qualified tips for the purpose of claiming the income tax deduction under the OBBBA. [TD 10044, 91 FR 19026, RIN 1545-BR63, 04/13/26]