November 2025 IRS Bulletin Highlights: New Rate Tables, Reporting Rules, and Fee Increases
Internal Revenue Bulletin 2025-45 (Nov. 3 2025)
The IRS published the November 3, 2025, Internal Revenue Bulletin (No. 2025-45). It includes federal rate tables for November 2025, transitional guidance for reporting new passenger-vehicle loan interest disclosures, updated PCORTF fee amounts, and the inflation adjustments for 2026 under Rev. Proc. 2025-32, which reflect the One Big Beautiful Bill Act (Public Law 119-21).
Key Administrative and Income Tax Updates
1. Revenue Ruling 2025-21
Federal Rates for November 2025
Publishes the applicable federal rates (AFRs) under §§ 1274, 1288, 7872, and 7520.
Short-term annual AFR = 3.69%; mid-term = 3.83%; long-term = 4.62%.
Adjusted federal long-term rate = 3.50%; long-term tax-exempt rate = 3.65%.
§ 42 low-income housing credit percentages: 70% credit = 7.98%; 30% credit = 3.42%.
§ 7520 rate for present-value calculations = 4.60%.
Practical impact: establishes discount and present-value rates for debt instruments, inter-company loans, below-market loans, valuation of annuities, and low-income housing credit computations for November 2025.
2. Notice 2025-57
Transitional Guidance for § 6050AA Reporting on Passenger-Vehicle Loan Interest
Section 70203 of Public Law 119-21 (the “One Big Beautiful Bill Act”) created new § 6050AA, requiring businesses receiving $600 or more of passenger-vehicle loan interest from individuals to file information returns.
The notice provides temporary relief for calendar year 2025.
Recipients may satisfy reporting obligations by furnishing borrowers with an annual statement showing the total 2025 interest received on the loan.
Acceptable delivery includes account portals, monthly or annual statements, or similar methods.
IRS will not impose §§ 6721–6722 penalties for 2025 if this simplified statement is provided.
The guidance gives lenders and servicers additional time to update systems before mandatory electronic filing begins in 2026.
Effective date: Applies to 2025 calendar-year interest.
3. Notice 2025-61
Updated PCORTF Fee Under §§ 4375–4376
Sets the adjusted applicable dollar amount for the Patient-Centered Outcomes Research Trust Fund (PCORTF) fee at $3.84 for policy and plan years ending on or after October 1 2025 and before October 1 2026.
Prior-year rate was $3.47.
Adjustment based on HHS-published projected per-capita National Health Expenditures.
Effective date: Applies to policy and plan years ending during the specified period.
4. Revenue Procedure 2025-32
2026 Inflation-Adjusted Code Amounts Reflecting the One Big Beautiful Bill Act
Purpose
Modifies Rev. Proc. 2024-40 to incorporate statutory amendments enacted July 4 2025 under the One Big Beautiful Bill Act (Pub. L. 119-21).
Provides comprehensive 2026 adjustments to over 60 Code sections, covering rate brackets, deductions, credits, phaseouts, penalties, and excise amounts.
Key Highlights from Rev. Proc. 2025-32
2025–2026 Statutory Changes
Tax rate tables made permanent: the seven-bracket structure (10% to 37%) was retained for individuals, and the four-rate structure was retained for estates and trusts.
Standard deduction permanently expanded and increased:
Married joint $31,500 (2025); $32,200 (2026)
Head of household $23,625 (2025); $24,150 (2026)
Single or MFS $15,750 (2025); $16,100 (2026)
Section 179 expensing: limit $2.5 million; phaseout $4 million (2025), both indexed for 2026.
Child tax credit permanently set at $2,200 (2025 base), indexed after 2025.
Adoption credit partially refundable up to $5,120 in 2026; phaseout begins at $265,080 AGI.
AMT exemption amounts (2026):
Joint $140,200 | Single $90,100 | MFS $70,100 | Trusts $31,400.
§ 199A qualified business income deduction: 2026 thresholds $403,500 (joint) / $201,750 (single).
§ 911 foreign earned income exclusion: $132,900 for 2026.
Estate and gift tax: basic exclusion amount $15 million for 2026; annual gift exclusion $19,000.
§ 7345 serious tax debt threshold: $66,000 (2026).
Inflation-indexed penalties:
Failure to file (§ 6651): minimum $535.
Partnership/S-corp late-filing (§§ 6698–6699): $260 per month per partner/shareholder.
Information return penalties (§§ 6721–6722): $340 per return/statement; intentional disregard ≥ $690 per return.
Excise taxes:
Air-travel segment fee $5.30 (domestic) / $23.40 (international).
Oil-spill tax (§ 4611) $0.27 per barrel.
Arrow-shaft excise $0.65 per shaft.
Retirement and benefit items:
Health FSA limit $3,400 (2026) with $680 carryover.
Commuter and parking benefits $340 monthly each.
QSEHRA limit $6,450 single / $13,100 family.
Other 2026 dollar thresholds:
§ 152 qualifying-relative income $5,300.
§ 221 education-loan phaseout $85,000 (S) / $175,000 (J).
§ 146 private-activity-bond volume cap = $135 × state population or $397.6 million minimum.
Why It Matters
Implements the first full round of inflation indexing after enactment of the One Big Beautiful Bill Act, ensuring statutory coherence between new permanent provisions and prior TCJA-era thresholds.
Provides definitive rates, credits, and penalty amounts practitioners must apply for 2025 and 2026 filing seasons.
Supplies lenders and employers with compliance guidance for new information reporting (vehicle-loan interest) and benefit adjustments (PCORTF, FSA, fringe-benefit, and QSEHRA limits).
Confirms IRS and Treasury programming timelines for implementing §§ 6050AA and 6726 reporting and penalty systems.
Timeline
July 4 2025: One Big Beautiful Bill Act enacted (Pub. L. 119-21).
Oct 9 2025: Inflation adjustments calculated.
Nov 3 2025: Publication of Rev. Rul. 2025-21, Notices 2025-57 and -61, and Rev. Proc. 2025-32 in I.R.B. 2025-45.
Dec 31 2025: Transitional relief for § 6050AA ends.
Jan 31 2026: Simplified borrower statements due under transitional rule.
Oct 1 2025 – Oct 1 2026: PCORTF $3.84 rate effective.
2026 tax year: All inflation-indexed items in Rev. Proc. 2025-32 apply.
Publication 2025-45 formalizes all statutory and inflation adjustments necessary for 2026 returns and confirms transitional compliance safe harbors for new vehicle-loan reporting.
The Takeaway
Practitioners should update rate tables, reporting templates, payroll systems, and penalty matrices using Rev. Proc. 2025-32 values for 2026.
Transitional relief under Notice 2025-57 applies only to 2025 interest data; full § 6050AA electronic reporting begins in 2026.