The American Bankers Association is recommending that the IRS make several changes to its proposed regulations to implement a new tax deduction for certain automobile purchases, saying the revisions would greatly reduce the compliance burden for taxpayers.
The One Big Beautiful Bill Act passed last year by Congress includes a car loan interest deduction of up to $10,000 on qualifying purchases. In a letter to the Treasury Department and IRS, the association suggested several technical changes, such as extending the relief provided to lenders for failing to file the needed records under the new law until 2027. ABA also said clarification was needed on several issues, such as the reporting obligations for lenders regarding deceased borrowers.
”Subject to integrating the above recommendations into forthcoming final regulations, ABA supports the overall regulatory regime as an effective and reasonable evolution of guidance concerning the Car Loan Interest Deduction,” the association said.
