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Level 10
February 13, 2026
Question

To verify or not to verify - us manufacturing

  • February 13, 2026
  • 2 replies
  • 8 views

Had this issue yesterday and I decided to take my clients word on this issue.  Based on ten years of knowing this client, I find her to be trustworthy. Also, based on a principle; this extra step is beyond my line for what I will do. I view verification of the manufacturing location to be for the IRS to do.

It would be interesting to hear the rationale(s) from preparers who decide to verify the manufacturing location.

2 replies

PhoebeRoberts
Intuit Community Champion
February 13, 2026

This is for the no tax on car loan interest thing? There's a VIN lookup that tells you whether it qualifies or not, and you need the VIN for the tax return anyhow.

I've had more than one client give me the VIN for their "new to them" used car. Quicker to paste the number into the lookup than to read a notice.

Level 10
February 13, 2026

thank you!

BobKamman
Level 15
February 13, 2026

How difficult is it to look at the first number of the VIN and decide whether it is a 1,4, or 5?

And you have to fill out the complete VIN on Schedule 1-A, right?

Also, this information from AI might be correct:

For the 2025 tax year, lenders will use the new Form 1098-VLI, Vehicle Loan Interest Statement, to report $600 or more in interest paid on qualifying passenger vehicle loans. While this form is being introduced, taxpayers may rely on their December 2025 loan statement (often labeled "YTD Finance Charges") if they do not receive a 1098-VLI for the 2025 tax year due to transitional relief.
Form Name: IRS Form 1098-VLI (Vehicle Loan Interest Statement).
Purpose: Reports interest paid on a Qualified Passenger Vehicle Loan (QPVL).
Threshold: Lenders must file this if they received $600 or more in interest on a loan during the calendar year.
Tax Year 2025 Notice: Because 2025 is a transition year, many lenders may not issue this form immediately, and taxpayers can use year-end statements to identify "YTD Finance Charges".
Eligibility: The deduction applies to new, US-assembled passenger vehicles (cars, SUVs, trucks) with a maximum interest deduction of $10,000.
Borrowers should look for this form, or check their year-end statements, to claim the deduction for interest paid on qualified vehicle loans.