Compliance
Compliance Essentials for US Businesses: Reporting & Information Changes in Late 2025
New reporting obligations and thresholds under recent Treasury and IRS guidance require businesses to update their compliance systems now to avoid penalties, especially with respect to passenger vehicle interest and Form 1099-K.
By NomadicTax Research Team • 5-8 min read • November 14, 2025
## Key New Reporting Requirements
### 1. Reporting Specified Passenger Vehicle Loan Interest (Section 6050AA)
Transformed by OBBBA and Notice 2025-57, new section 6050AA mandates that **recipients of interest** from specified passenger vehicle loans incurred after December 31, 2024 must report interest received when used in trade or business. For calendar year 2025, these recipients can provide a statement to individuals showing the total interest instead of filing full information returns to satisfy obligations—and **no penalties** will apply if this transitional relief is followed. ([irs.gov](https://www.irs.gov/irb/2025-45_IRB?utm_source=openai))
### 2. Lowered Form 1099-K Threshold
OBBBA reverts the threshold for Form 1099-K to **$20,000 in gross payments** for third-party settlement organizations (TPSOs). This reinstated limit applies to reporting for 2025. Businesses using payment platforms that previously escaped this reporting due to higher thresholds must soon begin compliance. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
### 3. Tax Professional Credentials: PTIN Renewals
All tax return preparers using Preparer Tax Identification Numbers must renew their PTIN for the 2026 Season. Non-renewal could lead to inability to file forms or accept returns properly. ([irs.gov](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
## Action Steps for Businesses & Tax Professionals
- **Audit your reporting software and workflow** to ensure inclusion of vehicle loan interest statements, and ability to generate required 1099-K forms at the $20,000 threshold. |
- **Update client communications** to explain changes—platform users need notice if they're recipients of IRS forms. |
- For preparers, ensure PTIN renewal deadlines are met to avoid disruption. If handling vehicle interest reporting, ensure staff know what constitutes “specified passenger vehicle loans.” |
- Keep thorough documentation: statements made, amounts reported, when threshold crossed, and how interest was computed. |
## Examples of Compliance Risk Avoidance
- An auto dealership receiving interest payments from customers needs to issue statements showing total interest received in 2025 to those individuals. If they simply ignore the new rule, penalties could follow starting tax year 2026. |
- A platform like Etsy or PayPal that saw gig sellers previously avoid 1099-K reporting due to inflated thresholds will now need to change their system; otherwise, sellers may miss forms and face IRS notices. |
## Best Practices & Tools
- Use IRS-released tools and instructions, such as Fact Sheets (2025-08) or Notices (2025-57). |
- Employ tax software that auto-flags accounts near the reporting threshold or associated with vehicle loan interest. |
- Maintain calendar alerts for PTIN deadlines, and ensure credential renewals. |
## Conclusion
Late 2025 demands attention—new thresholds and reporting duties could catch unprepared businesses and tax professionals off guard. Staying informed and setting processes in motion now are critical to staying compliant and avoiding unnecessary penalties.