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21 October 2025

IRS provides transitional guidance and penalty relief for reporting auto loan interest

The IRS on October 21, 2025, in Notice 2025-57, provides guidance for financial institutions, auto lenders and servicers that finance automobile purchases on how to comply with the requirements for reporting interest received on passenger vehicle loans under IRC Section 6050AA, as enacted by the "One Big Beautiful Bill Act" (OBBBA). The Notice describes what information must be provided to individuals and penalty relief for the 2025 tax year. A Tax Alert is forthcoming.

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Published by NTD’s Tax Technical Knowledge Services group; Chris DeZinno, legal editor

Document ID: 2025-2123

 

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