IRS Auditing Me for Taking EV Tax Credit

[MaintGrl]

Now if only we could get out of the oil industry tax payer subsidies bull crap!

Thank You! You are so'oo right!

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[RocketGhost]

By the By, what was the form letter number on the initial contact letter, was it CP2000, CP2501 something else?

566-T

I had the same problem. Turns out I had one digit on the vin wrong. Took almost two years and many letters an phone calls to straighten out

I triple checked, the VIN on my tax return, the VIN reported by the dealer, and the actual VIN of the truck all are correct and match.

I am preparing for it to be a long process to sort out. Hopefully though all the documents I gave them will satisfy them.

Wasn't there an income limit as well for the tax credit? I guess you checked that you qualified under that limit?

I also claimed the credit in 2024. I had a different problem before I filed - the dealership had not given me the paperwork!

So before I filed my 2024 return, I checked that the IRS had received the documentation on line - @TaxmanHog explained how to access it.

Yep, I was within the income limit. And my IRS account online shows that the dealer reported the sale.

 

[chl]

Thank You! You are so'oo right!

 

[HammoJ]

Got a letter from the IRS saying that the VIN on my tax return "is either ineligible or invalid." They want me to submit the VIN and a copy of the vehicle sales contract. There's also six yes/no . . . . . . . . . . . . . .

Sign-in to your IRS account (if you haven't established a sign-in yet, you can do it now). If the IRS has recognized your clean vehicle purchase, it will show up in your account. (As an aside, you can also get confirmation reports for recent years that show you've complied and paid in full.). If it's not there, i believe the problem rests with your dealer's failure to report to the IRS. They should be able to provide you with a copy of the report that they are required to have sent to the IRS.

After I bought my Lightning last year I was reviewing reporting requirements to make sure I would get the $7,500 tax credit. My dealer only provided me with the bill of sale and no indication that they had filed the report with the IRS. I got in their finance guy's face enlightening him with the requirements, and very shortly after that they complied and provided me with a copy of their report to the IRS. And, shortly after that it showed up in my IRS account, fortunately before I submitted my TurboTax return. Hope this helps resolve your problem

 

[Wendy]

Mine was rejected because it was a Platinum, ridiculous.

Mine didn't qualify because it was a Lariat including max tow, tonneau, bed spray ... which bumped the MSRP just over $80k. Ford made a mistake making many vehicles with MSRP just over the limit when they could have left the tonneau as aftermarket and been within the rebate limit.

 

[chl]

Sign-in to your IRS account (if you haven't established a sign-in yet, you can do it now). If the IRS has recognized your clean vehicle purchase, it will show up in your account. (As an aside, you can also get confirmation reports for recent years that show you've complied and paid in full.). If it's not there, i believe the problem rests with your dealer's failure to report to the IRS. They should be able to provide you with a copy of the report that they are required to have sent to the IRS.

After I bought my Lightning last year I was reviewing reporting requirements to make sure I would get the $7,500 tax credit. My dealer only provided me with the bill of sale and no indication that they had filed the report with the IRS. I got in their finance guy's face enlightening him with the requirements, and very shortly after that they complied and provided me with a copy of their report to the IRS. And, shortly after that it showed up in my IRS account, fortunately before I submitted my TurboTax return. Hope this helps resolve your problem

There were quite a few snags and posts about them on the forum.

The dealerships were given short notice about how to handle it, I think it wasn't until Nov 2023 that the IRS portal opened up and dealerships had to register.

My dealership was still trying to figure it all out when I bought in early Jan 2024.

Add to that some ambiguous language in the IRS information about it all.

Having been a gov't employee at the US Patent and Trademark Office for 4 years, and an atty since 1990, such things are no surprise to me.

When I had ID theft in 2007, and a tax return was filed in my name, and some crook got a refund, it took the IRS quite a while to sort it out, but all's well that ends well...death and taxes.

 

[RocketGhost]

Sign-in to your IRS account (if you haven't established a sign-in yet, you can do it now). If the IRS has recognized your clean vehicle purchase, it will show up in your account. (As an aside, you can also get confirmation reports for recent years that show you've complied and paid in full.). If it's not there, i believe the problem rests with your dealer's failure to report to the IRS. They should be able to provide you with a copy of the report that they are required to have sent to the IRS.

The purchase does show up in my IRS account online. The dealer reported the sale to the IRS while I was doing the purchase paperwork and they gave me the report before I left.

Although the audit letter only requested that I give them the VIN and a copy of the sales contract, I also gave them a copy of the Form 15400 dealer report, the page of my tax return showing the VIN, and I wrote a cover letter explaining that the VINs all match and pointing out language from the dealer report that explicitly says that the IRS has confirmed that this particular vehicle qualifies for the credit and the sale had been properly reported.

 

[RickLightning]

Mine was rejected because it was a Platinum, ridiculous.

It was rejected because the MSRP, less destination charge, was over $80,000. Trim is irrelevant.

566-T

I triple checked, the VIN on my tax return, the VIN reported by the dealer, and the actual VIN of the truck all are correct and match.

I am preparing for it to be a long process to sort out. Hopefully though all the documents I gave them will satisfy them.

Yep, I was within the income limit. And my IRS account online shows that the dealer reported the sale.

If one gave the dealership the credit, then when time came to file, they were relieved of one of the requirements, i.e. whether they had sufficient tax obligation to use the full tax credit. But, regardless of how the credit was taken, the income test had to be passed. Just noting that here for others.

Mine didn't qualify because it was a Lariat including max tow, tonneau, bed spray ... which bumped the MSRP just over $80k. Ford made a mistake making many vehicles with MSRP just over the limit when they could have left the tonneau as aftermarket and been within the rebate limit.

In fact, Ford didn't make any mistake, the dealer that ordered the vehicle made the mistake. Tonneau was a dealership add-on. Many, including myself, bought a Lariat with max tow and bed sprayed with an MSRP just a bit under the limit.

 

[dochawk]

As an attorney, I dealt with the IRS both before they created the Taxpayer Resolution Office (or whatever it was called) back in the early '90s, and after.

That office had the power to cut red tape after a TP attempted to deal with a problem.

Critically, staff were evaluated not on revenue recovered, but getting it right. (gee, what a concept).

After years away, and practicing again, I tried to contact the office for a client and couldn't find it!

turns out that it was so successful that they basically replaced the basic operation with it!

Anyway, the IRS isn't really hard to deal with. Just give them what they need to say "yes". Mistakes happen; make it easy for someone to check it off as "fixed."

Also, it can be helpful to get an appointment at your local office; they're generally easy to work with.

 

[chl]

There was a lot of confusion in 2023-24 about the dealership IRS portal, the up-front transfer to the dealership, etc.

It was a lot simpler in 2012 when I took the credit for my 2012 Nissan Leaf (bought in 2011).
I lost some of the credit due to the income/liability test back then.

 

[chl]

As an attorney, I dealt with the IRS both before they created the Taxpayer Resolution Office (or whatever it was called) back in the early '90s, and after.

That office had the power to cut red tape after a TP attempted to deal with a problem.

Critically, staff were evaluated not on revenue recovered, but getting it right. (gee, what a concept).

After years away, and practicing again, I tried to contact the office for a client and couldn't find it!

turns out that it was so successful that they basically replaced the basic operation with it!

Anyway, the IRS isn't really hard to deal with. Just give them what they need to say "yes". Mistakes happen; make it easy for someone to check it off as "fixed."

Also, it can be helpful to get an appointment at your local office; they're generally easy to work with.

Agreed.

It was no fun having ID Theft back in 2007, a lot of back and forth with the IRS because it was kind of a new thing. Their first letter to us was kind of vague and I had to call to see what happened. We owed and paid a heck of a lot of taxes that year due to a buy out my wife's employer offered and I thought maybe I made an error with the tax program.

But eventually it got straightened out, I got a PIN number, and the next attempt to file a return by some crook failed.

One year I got a letter saying documents didn't match the info on my return, What?
I called and they said I had a mortgage interest 1099 1098 that was not included on my return.
Turns out I never got it from the bank.
So I filed an amended return was due a larger refund than I expected.
Thank you, IRS!

 

[RickE]

The government is out of control with this anti EV, anti-green, anti-renewable energy shit that they are on.

Agree, the government should give out the $7,500 to everyone and should not even check to make sure that it qualifies. Just take peoples word for it!

 

[dochawk]

So I filed an amended return was due a larger refund than I expected.

Yeah, I welcome IRS letters.

They generally tell me that I forgot a payment that I made and that they're sending it back, or telling me about a credit or deduction I missed.

And, often, that they're paying me interest!

 

[RickE]

The thought has crossed my mind that the administration is directing the IRS to take a very hard look to "find" fraud with the EV tax credit.

I can see how people who legitimately got the credit may have a hard time fighting an audit if they don't have documentation. It would be touted as fraud when in reality the taxpayer just couldn't or wouldn't fight.

Remember, the previous administration hired 85,000 additional new IRS agents. Wonder if these are the agents "finding" fraud? They should give everyone the credit no questions asked.

 

[chl]

Agree, the government should give out the $7,500 to everyone and should not even check to make sure that it qualifies. Just take peoples word for it!

LOL.
Too late, the billionaires already got the money!

How about the business tax deduction (100%) for gas guzzlers if they weigh more than 6,000 lbs. (Section 179)?

"We have the best politicians money can buy!" (Will Rogers) and oil, gas, automaker, etc. lobbyists know it!
Who writes the tax laws?

Would it surprise you to know that...

"While Congress holds the constitutional power to enact tax laws, outside groups, including corporate lobbyists, industry associations, and specialized think tanks, heavily influence legislation by drafting "model" bills, providing expert testimony, and conducting advocacy campaigns. Prominent industry groups, such as the National Association of Manufacturers (NAM), frequently draft or propose specific tax provisions ."

But, when will I get a refund for the illegal tariffs that drove up the price of things I buy this year?

(never)

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