2024 Tax Credit Screw Up

[mags]

I bought my Lightning from a dealer 1/30/2024, my out the door price included the POS federal rebate. The dealer assured me they would provide the IRS required “sales sheet” within 3 days.
It’s been a week and still no sheet. So we blew the 3 day IRS window.
The finance guy said they screwed up the online registration (I was the guinea pig for the 2024 rebate). He wanted to simply redo the paperwork, but couldn’t since I registered the truck and was no longer on temp plates. He was going to do some more legwork, and I’m waiting to hear back.
Without the sales sheet I don’t see how I can file using the POS workflow. I have no idea who is on the hook for the rebate in this situation. What I want to know is, should I just write them a check for the 7500 then make a claim on my 2024 return? Is there any way I’m going to get screwed here?

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[Maquis]

I don’t think you need to do anything. The dealer is out $7500 if they can’t get their s#$t together.

 

[Randall Stephens]

Do you remember that “Bank error in your favor” Monopoly card? Well…there you go

 

[TaxmanHog]

If they've totally messed this up and can not credit the sales agreement with the $7500, then complete the purchase w/o it and file for the credit in the spring of 2025 when you file your 1040-2024.

Make sure they give you a form 15400!!!!!

Hopefully you're not at the low income tax margin where the credit might be reduced or null, if so then you won't benefit and will have missed the opportunity to legitimately secured the credit during purchase now.

Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After (fueleconomy.gov)

 

[bmwhitetx]

I’m also not fully understanding the issue. If they gave you $7500 off the sale price then you’re only concern will be do you meet the income limit. My understanding is that’s the only way the IRS can prevent you from keeping the $7500.

The dealer may be out but that’s on them for not understanding a well documented process.

They are on the hook. Do not write them a check.

 

[mags]

Thanks for the replies! I do qualify for the 2024 credit, so nothing to worry about there. I guess they screwed the pooch.

 

[TaxmanHog]

The dealer may be out but that’s on them for not understanding a well documented process.

There is a very narrow window for them to process the credit validation in the system, which has been effed up the past 5 weeks, I got another email alert that they gave dealers a little more time to get some data reports in by the end of Feb for recent sales. This is discouraging to hear and likely confusing to some dealers. Another H.C. administration fiasco in the making, but for the moment only affects the EV enthusiast population, not the entire population of the country.

 

[RickLightning]

They have 3 days to file, then 3 days to give you a copy of the accepted paperwork.

I don't believe you have any issue. You got the credit.

They don't seem to have any extension. https://www.irs.gov/newsroom/irs-an...clean-vehicles-to-submit-time-of-sale-reports

 

[TaxmanHog]

https://www.irs.gov/newsroom/freque...nd-qualified-commercial-clean-vehicles-credit

https://www.irs.gov/newsroom/topic-...and-previously-owned-clean-vehicles-credit#q6


Below links are points of information for dealers, I'm pointing it out in hopes this helps buyers understand the challenges dealers are struggling to adapt to.

https://www.irs.gov/credits-deducti...ip-to-enable-credits-for-clean-vehicle-buyers

https://www.irsvideos.gov/Business/Resources/HowDealersandSellersRegisterforEnergyCreditsOnline

https://www.irs.gov/pub/irs-pdf/p5867a.pdf

 

[TaxmanHog]

They don't seem to have any extension. https://www.irs.gov/newsroom/irs-an...clean-vehicles-to-submit-time-of-sale-reports

I got the email two days ago, the IRS WEB is frequently delayed in publishing some news releases.

 

[gmarcucio]

Here is what dealer was supposed to do and what customer was supposed to do.

 

[MaintGrl]

Hey folks, So, Please help me here . . regarding the $7,500 tax credit.
I assumed (not good) that all I needed to do was let my Tax preparer know I bought the EV truck (2023-12-21) with corresponding documentation and they would add that to a line item on my taxes. I was not given the opportunity to transfer the credit to my dealer and get the upfront reduction in the price I paid....am I missing something.

( Knowledge is learning from your own mistakes. Wisdom is learning from the mistakes of others... )

 

[RickLightning]

Hey folks, So, Please help me here . . regarding the $7,500 tax credit.
I assumed (not good) that all I needed to do was let my Tax preparer know I bought the EV truck (2023-12-21) with corresponding documentation and they would add that to a line item on my taxes. I was not given the opportunity to transfer the credit to my dealer and get the upfront reduction in the price I paid....am I missing something.

( Knowledge is learning from your own mistakes. Wisdom is learning from the mistakes of others... )

You bought in 2023, so that's exactly how it works. In 2024, the dealership can take the credit and give it to you right then, or not. Your (and their) choice.

 

[Smokewagun]

This better not be the case for my 2023 purchase. The dealer, let alone the IRS had no idea in 2023 what they were doing. My tax guy said to just bring in my sales contract at tax timeZ

 

[mags]

Here is what dealer was supposed to do and what customer was supposed to do.

Yeah I had a similar checklist for my state and federal rebates. At the time of sale the dealer was not able to get in to the IRS portal. They promised they would have it squared away. I guess the risk is all on them.
I did hear from them today and it sounds like the IRS gave an extension and it’s all being sorted out. As TaxmanHog said, it sounds like the IRS portal is a problem.