Tax credit form - did dealer screw this up?

[TheBertShow]

I’m buying one of the last ‘23 Lariat ER’s from Koons Sterling Ford in VA. Having it shipped to me in GA. Haven’t been impressed with them at all in terms of competency but they’re giving me a great deal and covering the shipping.

One thing that im questioning is how they’re handling the tax credit issue. Said they can’t bake the tax credit into sales price bc they weren’t a dealer on the list or something to that effect. Ok, fine, I’ll take it at tax time. But what’s got me concerned (aside from why they supposedly can’t attach it to the sales price) is that they’re using a seller form that says 2023 AND it says must be submitted to IRS by Jan 15. 2024. Obviously we’re well past that.

I’ve also read somewhere that this form must be submitted in 3 days from date of sale (could have that wrong but…). As you’ll see date of sale is 8/30/24.

My point is I don’t trust this dealership enough to a) not screw up and file the incorrect paperwork; and b) once they’ve done the sale and are so far away they won’t have any incentive to make it right if they so screw it up.

yes I could hire a lawyer to fix it if that happens, but I’m a lawyer myself-it’s just a headache. Ask me how I know…

Anyone out there who can shed some light on this? I’ve attached the form. I’d certainly appreciate it if so!!

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[bmwhitetx]

Did you go to the link referenced on the form?
Clean vehicle credit seller or dealer requirements | Internal Revenue Service (irs.gov)

For 2024 they are to register as a business at the IRS Clean vehicle Credits website, file a report within 3 calendar days of the sale, and give you a copy of the filing.

There's also this: IRS extends deadline for submitting IRC Section 25E and 30D clean vehicle credit seller reports (ey.com). Extension of old process to Feb 15, 2024. Any vehicle sold after Jan 17, 2024 must use online credit report process.

Looks like the dealer may be trying to do the 2023 requirement. Hope I'm wrong!

 

[RocketGhost]

What they have is outdated. The IRS changed the procedures starting January 1, 2024. To get the credit, the dealer has to report the sale on an IRS portal within three calendar days of the sale. The portal verifies that the vehicle is eligible for the credit and generates IRS Form 15400 as confirmation that the vehicle is eligible and that the sale was properly reported. The dealer is required to give you that form. You don't need to file it with your taxes, it's just for your records.

The current IRS guidance is that if the dealer does not report the sale within three days, the vehicle is ineligible for the credit and there is no recourse.

I've read many reports from buyers who have run into the issue of the dealer not reporting the sale or doing it in time. So there's a chance the IRS will issue new guidance since the buyers are getting screwed by no fault of their own.

The IRS actually recommends that dealers report the sale before it is finalized since the portal verifies vehicle eligibility by VIN. If the sale doesn't go through the dealer can void the sale report.

Keep us updated, particularly if you learn of any change in guidance from the IRS. If the IRS sticks to its guns, you have solid grounds for a cause of action against the dealer.

 

[TheBertShow]

This is what I was worried about. I almost don’t want to go through with the deal at this point bc I feel like I’m gonna get totally screwed on this. I suppose they could get me something in writing wherein they affirm that they’ll reimburse me for $7,500 if they screw it up but I doubt that’ll happen.

 

[TaxmanHog]

Squash the deal, and move onto another franchise that knows what the hell they're doing.

I can't wait to read the compliance audit reports from TIGTA in about a year on how many of these dealers are screwing the IRS and you the customers by NOT FOLLOWING procedures.

Bankrupt the lot of them

 

[bmwhitetx]

Said they can’t bake the tax credit into sales price bc they weren’t a dealer on the list or something to that effect.

I agree with the above, walk away.
On your comment I quoted - that part is somewhat true. They don't have to bake the $7500 into the sale if they don't want to. That does require some larger effort to register for and is more paperwork.

But if they don't bake it into the sale they need to do the other part that is mentioned in the rules we all quoted. They need to register on the website (easy) and submit a report (easy). If they can't do easy then walk.

 

[TheBertShow]

Dad gum it. That’s what I was afraid of. I had locked in the 0% financing deal at 72 months and they gave me a great deal.

there is literally no way for them to fix this now? They can’t go ahead and register with the IRS?

Squash the deal, and move onto another franchise that knows what the hell they're doing.

I can't wait to read the compliance audit reports from TIGTA in about a year on how many of these dealers are screwing the IRS and you the customers by NOT FOLLOWING procedures.

Bankrupt the lot of them

 

[RocketGhost]

This is what I was worried about. I almost don’t want to go through with the deal at this point bc I feel like I’m gonna get totally screwed on this. I suppose they could get me something in writing wherein they affirm that they’ll reimburse me for $7,500 if they screw it up but I doubt that’ll happen.

If you haven’t finalized the sale, and the clock hasn’t started ticking yet, I’d either back out or insist that they correctly report it and show you the 15400 before you sign. Don’t invite a nightmare by trusting they will do something in the future.

 

[3rdgenfan]

Is this the Azure Gray Lariat they had listed?

I worked back and forth with them a bit and immediately ended it when they told me they can't do the credit at time of sale. We're nearing the end of 2024 and if you (Koons) can't figure that out...maybe you're in the wrong business.

 

[RocketGhost]

there is literally no way for them to fix this now? They can’t go ahead and register with the IRS?

If the sale was finalized less than three days ago then they can still report it.

 

[TheBertShow]

I have esigned a few things basically to lock in the FMMC rates, but it technically has the date of sale being August 30, 2024. That’s what got me concerned. I haven’t signed the buyers order or any of the other docs that require a wet signature, but they all have dates of Aug. 30. The FMMC promo for 0% 72 mos. financing ends today, technically. Not sure that makes a difference.

It sounds like I need to ask them 1) whether they’re register with the IRS for the purposes of this tax credit and 2) if they are show me proof of it.

Can they apply to register in the meantime and fill out Form 15400?

I mean I’m honestly doing these SOB’s a favor. As Taxmanhog alluded to how many people hove they already screwed over with this?

If the sale was finalized less than three days ago then they can still report it.

 

[TheBertShow]

No it was Stone Gray Lariat, ‘23.

It was definitely a red flag for me when they said it but I didn’t care that much bc it was going to be 0% financing and $7500 less to pay in taxes come April. Now of course things have changed just a bit…

Is this the Azure Gray Lariat they had listed?

I worked back and forth with them a bit and immediately ended it when they told me they can't do the credit at time of sale. We're nearing the end of 2024 and if you (Koons) can't figure that out...maybe you're in the wrong business.

 

[TheBertShow]

By the way. Thank you all for your help!! This group is so helpful. Can’t wait to be a part of this group if I ever do get a Lightning! Lol

 

[TaxmanHog]

They can’t go ahead and register with the IRS?

I have no idea what the hold up is, but they're likely:

A) LAZY
B) Have a major non-compliance issue barring them from participation, not a good sign.

 

[rdr854]

Koons Sterling is now part of the Asbury Automotive Group. I would think that they would have their stuff together.

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