Incorrect "Battery Capacity" indicated by dealer on Form 15400... Anything to worry about?

[mblialou2010]

I have a question regarding my situation with the recent purchase of a 2024 Lightning Flash. I've decided to get the $7500 tax credit when I file my taxes instead including it in the deal. I did receive the Form 15400 that the dealership filed with the IRS and also received the IRS 30D (confirming that the IRS has received and accepted the report). Initially I just glanced over the forms and everything looked right (I mean it's just basic information on the 15400 - dealer address, date of sale, vehicle VIN, so how hard is it to not mess up). However, when I recently started preparing everything for when we file taxes (receipts, expenses, etc.) I read through the entire form 15400 that the dealer filled out and noticed that they indicated 9.6 kwh as the "Battery Capacity" by mistake, which would actually be the power output of the ProPower Onboard. I got the Flash which has a 131 kwh battery capacity. I then read up on the IRS website and noticed that apparently the amount of the tax credit you can get is dependent on, among other things, the battery capacity of the vehicle. Am I worried for nothing and the report that the dealership filed with the IRS is based on the VIN (which will verify that the truck actually has 131 kwh) or is this something that can cause issues? Under the "Transfer Election" section at the bottom of Form 15400 the dealer did indicate a credit of $7500", but I am not sure if the incorrect battery capacity will cause issues with getting the full $7500 credit. Any comments/suggestions would be much appreciated!

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[jamelski]

It’s a known issue with a lot of people’s. My form says I have 13.1 kW battery, but if you look at the bottom of the form, it should show the total credit allowed and show 7500 relax this form isn’t even required when you file your taxes. It’s based off your Vin in the IRS system knows that vin if it qualifies or not. You will also get 10 different answers from 10 different people stating oh you need your form fixed that form is generated by the IRS website when the dealer puts the price of the vehicle and the VIN number you’ll be fine chill b chill , lol

 

[RocketGhost]

Automakers give the IRS the VINs of eligible vehicles. When the sale is reported by the dealer the IRS system checks against that list. When you do your taxes you don't file Form 15400. I don't think anyone knows for sure, but my guess is that when you file your taxes you'll supply the VIN and the IRS will check it against the list of reported sales.

My quick search suggests that if the capacity is actually 9.6kwh it doesn't qualify for the full credit. The question is whether the IRS knows the actual capacity from its database of VINs or it relies on the dealer's submission.

Even though you got the credit at point of sale there's still the possibility that the IRS could claw some of it back from you when you file your taxes. The IRS is opening a short window of time for dealers to submit corrected sale reports. Look up the dates corrected submissions are allowed and make your dealer file a corrected report. I wouldn't play around with the IRS, go to the dealer and stand over their shoulder to make them do it if you have to.

 

[RickLightning]

The form is irrelevant, but your post is confusing.

You said you chose to get the tax credit when you file your taxes, yet you said " Under the "Transfer Election" section at the bottom of Form 15400 the dealer did indicate a credit of $7500"....

That seems to indicate that you transferred the credit to the dealership. Regardless, you still have to put info in when you file taxes, but if you did transfer the credit then you'll get no tax credit at time of filing.

 

[jamelski]

@mblialou2010 if the bottom of your form says the highlighted part. You good to get your credit and you did not transfer it to dealer. If it says “y” under transfer might want to contact your dealer. Other wise your credit is good for when you file taxes. This stupid form is truly irrelevant. It’s just proof to you from the dealer. They submitted the proper documentation to the IRS to properly file for a tax credit, etc. even without this form, you can still get the credit. It’s been talked about on this form multiple times based off of the IRS guidelines you don’t even need it.

 

[chl]

I have a question regarding my situation with the recent purchase of a 2024 Lightning Flash. I've decided to get the $7500 tax credit when I file my taxes instead including it in the deal. I did receive the Form 15400 that the dealership filed with the IRS and also received the IRS 30D (confirming that the IRS has received and accepted the report). Initially I just glanced over the forms and everything looked right (I mean it's just basic information on the 15400 - dealer address, date of sale, vehicle VIN, so how hard is it to not mess up). However, when I recently started preparing everything for when we file taxes (receipts, expenses, etc.) I read through the entire form 15400 that the dealer filled out and noticed that they indicated 9.6 kwh as the "Battery Capacity" by mistake, which would actually be the power output of the ProPower Onboard. I got the Flash which has a 131 kwh battery capacity. I then read up on the IRS website and noticed that apparently the amount of the tax credit you can get is dependent on, among other things, the battery capacity of the vehicle. Am I worried for nothing and the report that the dealership filed with the IRS is based on the VIN (which will verify that the truck actually has 131 kwh) or is this something that can cause issues? Under the "Transfer Election" section at the bottom of Form 15400 the dealer did indicate a credit of $7500", but I am not sure if the incorrect battery capacity will cause issues with getting the full $7500 credit. Any comments/suggestions would be much appreciated!

You can fill out the IRS form 8936 for 2024 tax year when it comes out - it'll be a part of TurboTax too.
The last time I checked it was still in draft form, but the 2023 form was available to look over.

And for those who did not get a form from your dealership, or if the dealership did not report the sale to the IRS, or did not give your the credit up-front off the sale price, or otherwise messed up because they weren't prepared etc., do not fret, that is provided for according to the IRS most recent instructions for claiming the credit:
----
Step 4: If you didn't get a time-of-sale report: Contact your seller

If you didn't get a time-of-sale report at the time of purchase or you lost it, contact the seller to get a copy of the report.

If you can't get a copy from the seller and more than 3 days have passed since the purchase date, proceed to Step 5.
-----
Step 5: File Form 8936 with your tax return

You don't need a printed copy of the time-of-sale report to qualify for the credit.

However, you will need to file Form 8936, Clean Vehicle Credits when you file your tax return for the year in which you took delivery of the vehicle. You must file the form whether you transferred the credit at the time of sale or you're claiming the credit on your return.

https://www.irs.gov/forms-pubs/about-form-8936

If the return is rejected due to Form 8936, ensure the VIN was input correctly.

Note there are no letters “O”, “Q” or “I” in a VIN. If the VIN was input correctly and you believe the vehicle is eligible, attach a file or explanation to substantiate the purchase before resubmitting the return.

https://www.irs.gov/credits-deductions/how-to-claim-a-clean-vehicle-tax-credit

 

[TaxmanHog]

Under the "Transfer Election" section at the bottom of Form 15400 the dealer did indicate a credit of $7500", but I am not sure if the incorrect battery capacity will cause issues with getting the full $7500 credit. Any comments/suggestions would be much appreciated!

If anything goes wrong with your claim for the credit, APPEAL the decision!!!!!!!!!!!!!

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