SFA Submits Comment Letter to the IRS on Reporting Obligations for Auto Loan Securitizations

On February 2, 2026, the Structured Finance Association (SFA) submitted a comment letter to the Internal Revenue Service (IRS) on the proposed regulations implementing the new federal income tax deduction for qualified passenger vehicle loan interest. The proposed rules introduce new reporting requirements for specified passenger vehicle loans. SFA’s comments focus on how those requirements would apply to securitized auto loan pools and the need for operational clarity. SFA recommends that Treasury and the IRS clearly define the responsible “interest recipient,” permit reliance on existing records, and avoid duplicative borrower reporting. Without these clarifications, the proposal could impose commercially impracticable burdens and disrupt established auto ABS market practices.

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Related Links:

• https://structuredfinance.org/resources/sfa-prepares-educational-brief-on-michigan-hb-5354/
• https://structuredfinance.org/sfa-responds-to-ftc-proposal-on-auto-dealer-practices-with-trust-investor-liability-implications/