IRS Offers Relief on Car Loan Interest Reporting
The IRS is providing relief on car loan interest reporting under H.R. 1, as both lenders and the agency need more time to comply with the new requirements.
The relief, outlined in Notice 2025-57, makes it easier for certain lenders to report car loan interest for vehicles that meet the standards set in the new tax law and suspends penalties for those lenders for 2025.
- The relief is provided for one year to help recipients change their systems.
- The IRS needs time to change its programming and forms to implement Sec. 119-21.
The One Big Beautiful Bill Act excludes qualified passenger vehicle loan interest from the definition of personal interest in Sec.
Applicable passenger vehicles must have had their final assembly in the United States.
Author's summary: IRS provides temporary relief on car loan interest reporting.