We are aware of the recent announcement in the One Big Beautiful Bill Act regarding the provision “No Tax on Car Loan Interest” paid by borrowers. As lenders, and as a CUSO, we know this is a potentially significant directive, and we’re actively reviewing the language to understand how it may impact your credit union and our tax reporting operations.
At this stage guidance is still limited, but based on what we’ve seen so far, lenders will likely be expected to identify and manage loans where the new rule applies.
Details are still a bit too sketchy to draw up actual programming specifications. So for now we suggest credit unions consider using a special Tracker Memo Code or a Due Diligence code to track loans according to the current stipulations in the bill. We’re also looking at the possibility of providing a report to list potentially eligible collateral records based on VIN.
We’ll continue to monitor developments closely and will share updates as soon as we receive clearer direction. In the meantime, we encourage you to begin planning how you’d like to handle affected loans so you’re ready to act quickly once tax reporting season begins and additional guidance becomes available.
To ensure we can support you and help you meet your need to comply with these new requirements, please contact info@auditlinksuite.com to let us know what you need from us.
