2024 Tax Credit Screw Up

[RickLightning]

Did you actually DO your ownership/purchase paperwork BEFORE the end of 2023?
: claim the tax credit, under 2023 rules, on your 2023 tax return.
While you may hesitate since you only put your hands on it in early 2024, you might can make the argument, if it ever comes up, that you were SUPPOSED to receive your ordered vehicle well back at the end of 2023, but shipping problems held up the 'hands on' receipt.

The IRS goes by when the vehicle is put into use. You cannot do the paperwork ahead of time, since you can't put the vehicle into use when it's not yet delivered.

Therefore, if the customer or dealer insists on doing paperwork before delivery (which is not tax fraud), and then submits for the tax credit in the prior year, they have now committed tax fraud.

Sponsored

 

[TaxmanHog]

I had not thought of that! Leave it to the Tax Man. That would solve my issue, I get to file on my 2023 return, and use my credit now. I'll see what they say. Good idea!

My purchase date was 1/6/24,

I'm reading that these conditions happened after 1/1/2024, you will have a 2024 credit to apply for on your 1040-2024 return to be filed in the winter/spring of 2025.

In the meantime if cash flow is the concern, adjust your wage withholdings or if self-employed adjust your quarterly Estimated tax deposits

 

[eRock77]

I have a feeling I got screwed by my dealer on this EV credit deal. My purchase date was 1/6/24, which was actually a Ford shipping error--my truck was stuck in a marshalling yard in Detroit for a month, I should have had it 12/23. In any case, I asked for my "cash on the hood" credit, and was told my dealership had not opted in to that program. I was not even aware it was legal for them to not opt in, it seems the IRS and Ford are both encouraging dealers to do this but they are not actually required to do it. I was told I would have to file it with my taxes. My 2024 taxes, filed in 2025.

What I should have done was refuse delivery on the truck until they came up with my $7500, but I was weak and it had been two and a half years and I just didn't want to wait any longer. So I accepted delivery. I've written hate mail to the dealership management but frankly I don't think that's going anywhere. I'm just mystified that a dealer would not want to get people their credits as soon as humanly possible.

Do you guys have any suggestions on how I can get them to budge on that after the fact? Do I call my congressman? The local newspaper? Ford? Any advice could be hugely helpful.

I got an update this morning, a call from my dealership owner. He told me that he HAD signed up his dealership for the "on the hood" credit program, but that neither he nor his team understood exactly what they had to do to get the credit even now. He apologized and is working through how to get me a check in the next week or two, they still have time to file or re-file paperwork at this point.

It was worth reaching out. Make sure your dealership manager or owner knows if you have a problem, not just the salesman. The management guys really do want you to be happy.

 

[TaxmanHog]

I got an update this morning, a call from my dealership owner. He told me that he HAD signed up his dealership for the "on the hood" credit program, but that neither he nor his team understood exactly what they had to do to get the credit even now. He apologized and is working through how to get me a check in the next week or two, they still have time to file or re-file paperwork at this point.

It was worth reaching out. Make sure your dealership manager or owner knows if you have a problem, not just the salesman. The management guys really do want you to be happy.

Sad that the dealers have been behind the curve on getting up to speed, the IRS had online seminars available to inform dealers about what to do to get set up. These are things the owner, and F&I manager need to be on the ball with.

Hopefully they will be able to submit the -late- approval request and get immediate credit, then pass that forward to you on a dealership check.

 

[eRock77]

Sad that the dealers have been behind the curve on getting up to speed, the IRS had online seminars available to inform dealers about what to do to get set up. These are things the owner, and F&I manager need to be on the ball with.

Hopefully they will be able to submit the -late- approval request and get immediate credit, then pass that forward to you on a dealership check.

You and me both, my friend! I'm pleased they are acknowledging that this was an issue on their end. I'm glad they are willing to work to make it right.

 

[BigMattT]

Over the weekend, my new EV was the first point of purchase credit my dealer processed. I got the Ford sellers report 30D document with my vehicle and deal's info on it, and the downpayment line on our sales agreement showed an extra $7500 over our downpayment check amount. What have others received as their "confirmation"?

This page on the IRS website mentions a "confirmation":
https://www.irs.gov/credits-deductions/clean-vehicle-credit-seller-or-dealer-requirements

"...providing buyers a copy of the seller report submitted to IRS Energy Credits Online and the confirmation that the IRS accepted the submission meets your reporting obligation"

 

[TaxmanHog]

Over the weekend, my new EV was the first point of purchase credit my dealer processed. I got the Ford sellers report 30D document with my vehicle and deal's info on it, and the downpayment line on our sales agreement showed an extra $7500 over our downpayment check amount. What have others received as their "confirmation"?

This page on the IRS website mentions a "confirmation":
https://www.irs.gov/credits-deductions/clean-vehicle-credit-seller-or-dealer-requirements

"...providing buyers a copy of the seller report submitted to IRS Energy Credits Online and the confirmation that the IRS accepted the submission meets your reporting obligation"

Congrat's on your new Lightning!!

Keep the 30D document in your tax file records for 2024 to be reviewed in 2025, don't worry about the official form 15400 at this time, you'll likely have no issues going forward. I'm not sure if you'll need to do anything next year with this information which is more useful to folks who did not get the credit up front and will file for it next year.

 

[TaxmanHog]

I just got another IRS email alert reminding the auto sales industry to get connected!

They are promoting a release from January 2024

https://www.irs.gov/newsroom/treasu...native-fuel-vehicle-refueling-property-credit

Issue Number: Tax Tip 2024-16

Auto dealers must register with the IRS to receive advance payments of the Clean Vehicle Tax Credit

To submit time-of-sale reports and receive advance payments of the Clean Vehicle Tax Credit, auto dealers and sellers must register their business with IRS Energy Credits Online. Dealers and sellers must use this tool to submit all time-of-sale reports for vehicles placed in service in 2024 and future years.

How to register
To register or access a previously registered business, dealers and sellers can go to IRS Energy Credits Online. The step-by-step instructions guide them through the process to register, submit time-of-sale reports and enter advance payment information. It may take 15 days or longer for the registration to process.

Once registered, dealers and sellers must use this tool to enter time-of-sale reports and provide the buyer certain required information.

What happens after registration
When a dealer successfully submits a time-of-sale report, the vehicle is eligible for the credit. A submission is successful when the dealer receives a copy of the report and a confirmation of acceptance by IRS Energy Credits Online. Buyers should use the copy of the report when they file their annual federal tax return.

Find out more about the Clean Vehicle Credits at IRS.gov/cleanvehicle

Sponsored