Compliance
OBBB’s New Reporting Rules: What Lenders & Tax Pros Need to Know for 2025
The One, Big, Beautiful Bill introduces new information-reporting obligations for car loan interest and resets thresholds for Form 1099-K—here’s what lenders, businesses, and self-employed workers must prepare for in 2025.
By NomadicTax Research Team • 5-8 min read • November 21, 2025
## Regulatory Changes Introduced by OBBB in 2025
There are two major reporting changes under the **One, Big, Beautiful Bill (OBBB)** that begin impacting lenders, businesses, and individuals in 2025:
1. **Car Loan Interest Reporting:** Lenders must report interest of $600 or more on qualified passenger vehicle loans. There’s also transitional relief for what counts as “making a statement.”([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-transition-relief-for-2025-for-businesses-reporting-car-loan-interest-under-the-one-big-beautiful-bill?utm_source=openai))
2. **Form 1099-K Threshold Reversion:** The threshold for third-party settlement organizations to issue a Form 1099-K returns to **$20,000 + 200 transactions**, pre-ARPA levels.([irs.gov](https://www.irs.gov/newsroom/irs-issues-faqs-on-form-1099-k-threshold-under-the-one-big-beautiful-bill-dollar-limit-reverts-to-20000?utm_source=openai))
## Transitional Relief & Practical Steps for 2025
To ease into these changes, the IRS has issued various relief and guidance:
- **For car loan interest**, lenders are considered compliant if they provide statements via a portal, monthly/annual statement, or similar means. They won’t face penalties in 2025 if they meet those disclosure methods.([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-transition-relief-for-2025-for-businesses-reporting-car-loan-interest-under-the-one-big-beautiful-bill?utm_source=openai))
- **For 1099-K** issuers, review your payment platforms or sales volumes. If you exceed either threshold, set up tracking to capture 200+ transactions or $20,000 total.([irs.gov](https://www.irs.gov/newsroom/irs-issues-faqs-on-form-1099-k-threshold-under-the-one-big-beautiful-bill-dollar-limit-reverts-to-20000?utm_source=openai))
## Risk & Compliance Audit Tips
If you’re in a business or lending industry where compliance is critical:
- Implement systems now to identify payees and borrowers crossing thresholds.
- Maintain documentation of Statement issuance (e.g. emails, portal logs).
- Review software settings for 1099-K ejects or flags.
## Example Comparison
| Scenario | 2024 Rules | 2025 Rules Under OBBB |
|---|---|---|
| John sells handmade goods online, earns $18,000 across 190 transactions | No 1099-K required under ARPA threshold $600 | Still no 1099-K, because neither threshold exceeded under OBBB|
| Lender financed a qualified passenger vehicle loan with interest $700 in 2025 | No reporting obligation (rule starts after Dec 31, 2024) | Must report interest, but accepts annual statement or online portal disclosure with no penalty if meets guidance|
## What You Can Do Now
- For lenders: assemble your reporting process templates (annual statements, portal dashboards, etc.) and ensure borrower access to interest totals.
- For businesses using payment platforms: tally transaction counts and total sums through year-end.
- For tax pros advising clients: schedule check-ins for mid-2025 thresholds to ensure no surprises.
**Category:** Compliance
**Tax Home:** US
**Author:** NomadicTax Research Team
**Read Time:** 5-8 min
**Published:** true