IRS EV Purchase Credit

[F150Flash]

For any of you that purchased your Lightning in 2024, did your dealer provide you with an IRS Energy Credit Online accepted Clean Vehicle Time-of-Sale report? I purchased my 23 Lariat Extended Range at the end of March 2024 and questioned the dealer about the credit. They did not offer taking it off the purchase price since they opted not to participate in that program. They said I could take the credit on my tax return, but did not provide any supporting documents. I asked several times about any forms I would need and was told my purchase contract was all I needed.

I have since researched with IRS and it is very clear that the dealer is supposed to file sale information with the IRS and I am supposed to get a copy of above mentioned form. I've provided that information to them and they have simply ignored me.

I'm curious, did anyone else that didn't take the credit off the purchase price, receive the form? I've called the local IRS office and was told if the dealership didn't file the form within 3 days, I couldn't get the credit.

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[TaxmanHog]

Members are reporting a mix of receiving the form and others have not like you.....

When you file your 2024 tax return in the spring of 2025 try making a claim for the credit, be prepared for a possible rejection, but exercise ALL your appeal rights, eventually these dealers are going to get an audit or a civil penalty for non-compliance.

 

[RocketGhost]

I got the form, I was aware of what the dealer needed to do and told them that I wasn’t going to leave without it. They took care of it without any hassle.

 

[gmarcucio]

I could be wrong, but I think you only need the form from the dealership if you are claiming the instant "point of sale" credit at the time of the sale. In your case you wanted the point-of-sale credit but your dealer didn't participate in it. So you would either have to claim it on your taxes this year the traditional way or find another dealer to purchase the vehicle that participates. As far as claiming the credit the traditional way, I never needed any forms from the dealership other than the bill of sale to show proof of purchase. At the end of the year when you file your taxes you fill out federal form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit. On this form you will provide your VIN number so that the IRS knows the vehicle qualifies for the credit and has not already been claimed. From what I am told one advantage of the point-of-sale method allows you the full $7,500 tax credit at the end of the year even if you didn't have a $7,500 tax liability at the end of the year.

 

[flyct]

My friend went through this recently with a Lyriq he purchased 3 months ago. I told him to hound the dealer for the IRS form (15400) showing they registered the sale with the vin and his social security number with the IRS. They eventually sent him the form after dozens of calls. The Form showed the date of sale as the date they sent him the form rather then the actual date of sale, but at least they reported it.

His accountant told him to he was going to report the actual date of sale on his tax return and the dealer would have to explain why they reported the wrong date. @TaxmanHog also recommended he report the actual date n the tax return.

 

[RocketGhost]

I could be wrong, but I think you only need the form from the dealership if you are claiming the instant "point of sale" credit at the time of the sale. In your case you wanted the point-of-sale credit but your dealer didn't participate in it. So you would either have to claim it on your taxes this year the traditional way or find another dealer to purchase the vehicle that participates. As far as claiming the credit the traditional way, I never needed any forms from the dealership other than the bill of sale to show proof of purchase. At the end of the year when you file your taxes you fill out federal form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit. On this form you will provide your VIN number so that the IRS knows the vehicle qualifies for the credit and has not already been claimed. From what I am told one advantage of the point-of-sale method allows you the full $7,500 tax credit at the end of the year even if you didn't have a $7,500 tax liability at the end of the year.

The issue at hand is that starting in 2024 the dealer has to report the sale to the IRS within three days of purchase. The reporting portal generates Form 15400 as a confirmation receipt and the dealer is supposed to give it to you. IRS guidance is that if the dealer does not report the sale within three days the vehicle is ineligible for the credit and the taxpayer cannot claim it on their tax return.

Lots of dealers are dropping the ball so I expect the IRS to change their guidance or allow taxpayers to claim the credit anyway. But I'd expect some hassle. Unless they formally change their guidance your tax return will likely be rejected.

 

[RickLightning]

I could be wrong, but I think you only need the form from the dealership if you are claiming the instant "point of sale" credit at the time of the sale. In your case you wanted the point-of-sale credit but your dealer didn't participate in it. So you would either have to claim it on your taxes this year the traditional way or find another dealer to purchase the vehicle that participates. As far as claiming the credit the traditional way, I never needed any forms from the dealership other than the bill of sale to show proof of purchase. At the end of the year when you file your taxes you fill out federal form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit. On this form you will provide your VIN number so that the IRS knows the vehicle qualifies for the credit and has not already been claimed. From what I am told one advantage of the point-of-sale method allows you the full $7,500 tax credit at the end of the year even if you didn't have a $7,500 tax liability at the end of the year.

Yes. Form is required as stated above.

The advantages of time of sale versus time of return are:

- as you stated, if you lack the tax liability, you still get the full credit (but you must still hit the income levels)

- if you finance, you're financing $7,500 less. If you pay in full, you're fronting $7,500 less.

 

[mrau]

I got Form 15400 "Clean Vehicle Seller Report" from the dealer on the day I purchased in February 2024. The dealer did apply the tax credit at the time of sale. Manager said I was the first customer they did Time of Sale with and it went smoothly.

I will still have to claim the tax credit next year when I file my 2024 tax return. Although I won't get any additional money, still need Form 15400 to file with my tax return.

So yes, you will need Form 15400 if claiming the tax credit. Best to get it from the dealer now while the sale is still fresh and the folks at the dealership are still there.

 

[gmarcucio]

Yes make sure you ge form 15400 before you leave the dealership.

 

[TaxmanHog]

I hope the civil penalty against the noncompliant dealers is steep!

 

[Dinozero]

I hounded my Dealer for days after buying my truck. There was a holiday weekend in there and I got the form four or five days after I bought the truck instead of three.

I am not at all worried though.

Because I actually looked up the IRS form that gets filed for the tax credit and that information is not on that document.

It’s also not on the document that they provide you. If everybody looks at their 15 400.

You will see two or three dates.

There is actually not a date that counts when it was actually submitted to the IRS.

There is a date the form is provided to the customer.

And there is a date the vehicle is placed into service.

Just think, when a dealer tries to claim the $7500 tax credit they have three days to claim it. If they try to claim it on the fourth day, the system will literally not let them get their credit.

They could have also designed the system to not allow them to submit this form late… But they are able to submit it late.

The actual IRS document that you submit for your tax credit, only ask the date that the car was placed in the Service.

If the 15 400 matches that date, the car was placed into Service, that’s all you need.


They deliberately left out the date “ the dealer submitted to the IRS” from the 15 400.

So you literally cannot prove with documentation, whether it was, or it was not submitted within three days.

Now there is also an obligation from the dealer to give it to the customer within a certain amount of days, and that would fall on the Dealer. But it still would not affect your claiming of the tax credit because that is not listed anywhere on the tax credit form.

 

[mrau]

actually looked up the IRS form that gets filed for the tax credit and that information is not on that document.

The forms for the 2024 tax year are not published yet. It is possible the new 2024 form could require more info to reflect the changes that took effect during 2024.

But I hope you are right and filing the tax credit is just as simple as years past.

 

[F150Flash]

For any of you that purchased your Lightning in 2024, did your dealer provide you with an IRS Energy Credit Online accepted Clean Vehicle Time-of-Sale report? I purchased my 23 Lariat Extended Range at the end of March 2024 and questioned the dealer about the credit. They did not offer taking it off the purchase price since they opted not to participate in that program. They said I could take the credit on my tax return, but did not provide any supporting documents. I asked several times about any forms I would need and was told my purchase contract was all I needed.

I have since researched with IRS and it is very clear that the dealer is supposed to file sale information with the IRS and I am supposed to get a copy of above mentioned form. I've provided that information to them and they have simply ignored me.

I'm curious, did anyone else that didn't take the credit off the purchase price, receive the form? I've called the local IRS office and was told if the dealership didn't file the form within 3 days, I couldn't get the credit.

Follow up ... I went to the dealer again today and was told this time that they are working to get set up with IRS. They should have my form to me in 30 days. The didn't explain how they've been selling EV's all year and didn't seem to know about this. Surprise Ford in Surprise Arizona.

 

[RocketGhost]

I will still have to claim the tax credit next year when I file my 2024 tax return. Although I won't get any additional money, still need Form 15400 to file with my tax return.

Just to clarify, you don't need to file Form 15400. You actually don't need it at all since all the information on it is readily available to you. It's proof that the sale was reported and it has all the information you need on one page.

So you literally cannot prove with documentation, whether it was, or it was not submitted within three days.

I suspect that when a taxpayer claims the credit, the VIN is run through the IRS system and it checks for proper and timely reporting. If not, your return will probably get kicked back.

 

[TaxmanHog]

What is printed on the 15400 may not be everything that is input to the reporting system.
https://www.irs.gov/pub/irs-pdf/f15400.pdf

I need to do some digging into the Internal Revenue Manual [IRM] for the Information Returns Program {IRP}. Looking at the data file format and inputs to the sales reporting portal, then we'll know exactly what the cross matching values are, obviously it will include your SSN and the VIN, etc.

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