Lenders must report car loan interest of $600 or more and tell the borrower
What the document says“shall make the return described in subsection (b) with respect to each individual from whom such interest was received at such time as the Secretary may provide.”
The section adds a new section 6050AA to the Internal Revenue Code of 1986 requiring a person in a trade or business who receives $600 or more of interest from an individual in a calendar year on a specified passenger vehicle loan to file a return naming the individual, the interest received, the outstanding principal at the start of the year, the loan origination date, and the year, make, model and vehicle identification number of the vehicle. The filer must also give the individual a written statement with the filer's contact details and that information, on or before January 31 of the following year. The Secretary must issue guidance, including guidance to prevent duplicate reporting, and no return is required for a period the new deduction does not reach.
What the document actually says“shall make the return described in subsection (b) with respect to each individual from whom such interest was received at such time as the Secretary may provide.”
The lender must file a return for each borrower. It covers the interest that borrower paid. The Secretary sets when it is due.
The duty starts at $600 of interest in a year. The return names the loan and the car. The borrower must get a copy by January 31.
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