Dealerships that didn't provide paperwork for EV Tax Credit

[Maineiac12]

If you bought your vehicle in 2024 and the dealer did their part properly, you would have received a letter from the IRS listing the VIN and date of sale along with instructions on how to file.

If you didn’t get this IRS letter in early January the dealer probably screwed up and you’re most likely SOL for that money. I don’t see the current administration going out of their way to help out on EV issues so an appeal is unlikely to help.

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[Dino]

If you bought your vehicle in 2024 and the dealer did their part properly, you would have received a letter from the IRS listing the VIN and date of sale along with instructions on how to file.

If you didn’t get this IRS letter in early January the dealer probably screwed up and you’re most likely SOL for that money. I don’t see the current administration going out of their way to help out on EV issues so an appeal is unlikely to help.

If you did not transfer your federal rebate to the dealer, no IRS letter was sent. In that case the rebate is available to you if the dealer reported the sale correctly to the IRS. I did not receive a letter and IRS shows I am eligible for the $7500 rebate on my 2024 taxes (hope to file in the next week with no issues).

 

[RocketGhost]

I would love to see an official IRS communication, to a taxpayer, showing denial of the credit.

Did they post screenshots of exactly where/when the problem occurs.

• Original entry into commercial online filing systems?
• Post submission E-File rejection?
• Return posted and refund reduced, with an IRS explanation letter?
• Any appeal rights with the denial communication?

I'd love to understand what stage this is occurring.

People are reporting that their returns were rejected due to the VIN not showing in the IRS database of sold vehicles.

Fortunately I'm not going to be in this situation, I made sure the dealer reported the sale and they gave me Form 15400 before I left. They even gave me printed screenshots of each confirmation page on the IRS portal.

But if I was having to deal with this issue others are having, this is what I personally would do given no further IRS guidance. I would print the guidance from the IRS that explicitly shows the dealer's obligation to report the sale within three days and the statement that says if the sale isn't reported the vehicle is (forever) ineligible for the credit. I would also print the IRS rejection saying the VIN does not match a sold vehicle. I'd have a meeting with the dealer GM, kindly state that their error caused you to lose out on $7,500, request that they write you a check for it, and if they don't you believe you have a strong chance of prevailing in a legal action against the dealer in small claims court.

 

[TaxmanHog]

I'd have a meeting with the dealer GM, kindly state that their error caused you to lose out on $7,500, request that they write you a check for it, and if they don't you believe you have a strong chance of prevailing in a legal action against the dealer in small claims court.

I support this remedy as well.

Another scenario, that concerns me is dealers up front stating they don't participate and mislead you into thinking you can just request the credit after the fact filling your tax return, this is underhanded and why I DEMAND that @Ford Motor Company sanction these dealers immediately from further sales until they are onboard.

 

[Maineiac12]

I support this remedy as well.

Another scenario, that concerns me is dealers up front stating they don't participate and mislead you into thinking you can just request the credit after the fact filling your tax return, this is underhanded and why I DEMAND that @Ford Motor Company sanction these dealers immediately from further sales until they are onboard.

I agree, this is some BS. I think the IRS deadline was a little short, but dealers are absolutely at fault here.

Sadly, I don’t see someone prevailing in court without something in writing from the dealer saying the customer would get the credit. It’s going to be an uphill battle for sure but Ford or someone should step in to help because $7500 is a lot of money and the buyer did nothing wrong. The IRS could also relax their restriction but I also doubt that’ll happen.

 

[TaxmanHog]

The IRS could also relax their restriction but I also doubt that’ll happen.

Weakening the compliance audit loop is not an option I'd like to see, but if they did allow for variances, it should be accompanied by a civil penalty against the selling dealership, ie. $15,000 fine per sale.

 

[RocketGhost]

Another scenario, that concerns me is dealers up front stating they don't participate and mislead you into thinking you can just request the credit after the fact filling your tax return, this is underhanded and why I DEMAND that @Ford Motor Company sanction these dealers immediately from further sales until they are onboard.

Sadly, I don’t see someone prevailing in court without something in writing from the dealer saying the customer would get the credit. It’s going to be an uphill battle for sure but Ford or someone should step in to help because $7500 is a lot of money and the buyer did nothing wrong. The IRS could also relax their restriction but I also doubt that’ll happen.

I was told by the GM at my dealer that Ford told the dealers about the IRS reporting but it was among a multitude of emails he gets from them every day. So I can imagine how dealers would be clueless unless they pay attention to all communication from Ford and act on it. I'm guessing a lot of the communication is stuff that it's all that urgent.

One issue is that the directives from the IRS suggest that dealers are only required to report in order to allow the purchaser to claim the credit. To the best of my understanding there is no tax code that requires dealer reporting. If they don't it becomes a civil matter between the dealer and purchaser. Then you're in court trying to show some sort of contractual obligation between the dealer and purchaser. Any communication from the dealer that suggests the vehicle can get the credit would help your case.

Ultimately the dealers know they screwed up once (and if) they understand their reporting obligation. And they should have known because Ford told them about it.

 

[mrau]

Seems dealers don't have to report EV sales if they don't want to. Voluntary on their part....however the EV will not be eligible for tax credit if dealer does not participate in reporting.

Buyer Beware !!


From IRS page:

Q35. As a dealer, am I required to participate in the Clean Vehicle Program? (updated April 26, 2024)
A. No, participation in the Clean Vehicle Program is voluntary. However, beginning in 2024, only sales reported through the Energy Credits Online (ECO) tool are qualified sales for purposes of claiming the Clean Vehicle Credit. A buyer cannot claim the credit on a clean vehicle that has not been reported through ECO. Additionally, in order for the buyer to elect to transfer the clean vehicle credit to the dealer, the dealer must be successfully registered through the ECO portal for the advance payment program.

 

[TaxmanHog]

Seems dealers don't have to report EV sales if they don't want to. Voluntary on their part....however the EV will not be eligible for tax credit if dealer does not participate in reporting.

Buyer Beware !!


From IRS page:

Q35. As a dealer, am I required to participate in the Clean Vehicle Program? (updated April 26, 2024)
A. No, participation in the Clean Vehicle Program is voluntary. However, beginning in 2024, only sales reported through the Energy Credits Online (ECO) tool are qualified sales for purposes of claiming the Clean Vehicle Credit. A buyer cannot claim the credit on a clean vehicle that has not been reported through ECO. Additionally, in order for the buyer to elect to transfer the clean vehicle credit to the dealer, the dealer must be successfully registered through the ECO portal for the advance payment program.

We need a better business index of registered dealers, avoid those that aren't registered, deny them business long enough and they to shall participate.

 

[TaxmanHog]

@Ford Motor Company you control the franchise agreement, terms and conditions must require participation in this program to be permitted to sell BEV's, don't think that regional dealers have you over some kind of barrel when they scuttled model-E on you, stand firm and pull the plug on this!

Your negligence is facilitating practical fraud against consumers.

 

[RenegadeStar]

Add us to the list of getting screwed by the dealership. They provided us with the time of sale report but the IRS says there is no entry in the database for our vin so we aren't eligible for the credit.

 

[RickLightning]

People are reporting that their returns were rejected due to the VIN not showing in the IRS database of sold vehicles.

Fortunately I'm not going to be in this situation, I made sure the dealer reported the sale and they gave me Form 15400 before I left. They even gave me printed screenshots of each confirmation page on the IRS portal.

But if I was having to deal with this issue others are having, this is what I personally would do given no further IRS guidance. I would print the guidance from the IRS that explicitly shows the dealer's obligation to report the sale within three days and the statement that says if the sale isn't reported the vehicle is (forever) ineligible for the credit. I would also print the IRS rejection saying the VIN does not match a sold vehicle. I'd have a meeting with the dealer GM, kindly state that their error caused you to lose out on $7,500, request that they write you a check for it, and if they don't you believe you have a strong chance of prevailing in a legal action against the dealer in small claims court.

"People are reporting"...

I'd like to see Bob Smith post his rejection letter from the IRS, hiding his personal information.

Ford setup the dealership systems so that the printing of the report was PART OF THE SALES PROCESS. I gave my dealership the steps, which they then confirmed that their systems showed them.

 

[RenegadeStar]

"People are reporting"...

I'd like to see Bob Smith post his rejection letter from the IRS, hiding his personal information.

Ford setup the dealership systems so that the printing of the report was PART OF THE SALES PROCESS. I gave my dealership the steps, which they then confirmed that their systems showed them.

This is what we got. I called the IRS and they said it means the vin is not in the database.

 

[Joe.....Montana]

This whole situation is pretty disappointing.

Unfortunately you never stop paying for an education. I have dealt with the IRS and car dealerships...so I knew to be prepared before making the purchase and utilizing the tax credit.

 

[RickLightning]

This is what we got. I called the IRS and they said it means the vin is not in the database.

Thanks. Yikes.

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