New IRS Auto Loan Rules Effective January 31, 2026: Vehicle Qualification & Interest Reporting Details
Financial institutions must act quickly to meet the IRS reporting deadlines under the One Big Beautiful Bill Act. Lenders are now responsible for confirming qualified passenger vehicle status, issuing correct borrower interest statements, and maintaining proof of compliance. Errors in reporting could result in penalties and borrower confusion. Join this session to gain the tools and templates needed for IRS-compliant vehicle loan reporting and borrower education.
AFTER THIS WEBINAR YOU’LL BE ABLE TO:
- Understand the requirements for qualified vehicle loans under § 163(h)(4)
- Learn what the IRS expects from lenders and what not to report
- Explore verification options using VIN decoders, certifications, and system flags
- Review transitional relief and best methods to meet the January 31, 2026, notice deadline
- Identify key policy, audit, and documentation updates to protect your institution from penalties
WEBINAR DETAILS
The One Big Beautiful Bill Act introduced a new federal tax deduction for qualified passenger vehicle loan interest and added significant IRS reporting obligations for lenders. Under transitional guidance issued in IRS Notice 2025-57, financial institutions must determine whether each financed vehicle qualifies and issue accurate borrower interest statements by January 31, 2026. This rule is more than a data exercise—it’s a critical compliance requirement that demands proper verification, documentation, and borrower communication. Join compliance attorney David Reed as he breaks down the reporting process, including VIN decoding, GVWR verification, transitional-year safe harbors, and staff training strategies to ensure full compliance and borrower confidence.
WHO SHOULD ATTEND?
This informative session is designed for executives, loan operations and servicing managers, compliance staff, IT staff, audit and quality control, and anyone interested in IRS reporting requirements.
