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:
- 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)
- 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)
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)
- 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)
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