IRS Issues Guidance to Lenders Reporting Car Loan Interest (1)

Businesses required to report car loan interest got some relief in new guidance from the IRS Tuesday.

The GOP’s multitrillion dollar tax and spending law made it so certain taxpayers can deduct up to $10,000 in car loan interest on their tax return for vehicles purchased between 2025 and 2028. The law also established reporting requirements for businesses that receive individual interest of $600 or more on certain loans.

Notice 2025-57 provides some transitional guidance for lenders that are required to file information returns with the IRS for 2025, stating they will have met their reporting obligations if they make ...