IRS Notice CP99D Transferred Tax Credit letter 2025

[TaxmanHog]

If I don't receive the IRS letter

Or the illustrious US PO has not delivered it yet, or misdelivered it, or as you suspect the dealer never reported the sale as they should have.

Do you have an IRS ONLINE account access?

https://www.irs.gov/your-account

If so log in and try researching your 2024 information returns, these would be W2, 1099, etc, there MIGHT be an information return regarding the purchase, this goes for all members, who have receive a letter in good standing, I'm really curious if this process automatically creates the information return.

Sponsored

 

[TaxmanHog]

Ahhhhhhh HA

Of course I DID NOT buy a BEV in 2024 or 2025 .... so this makes sense........

 

[Dino]

Looks promising I will give it a try, Thanks.

 

[StevenC56]

Here's what I see on my account.

 

[PJnc284]

Bought one in 2024 but no notice in the mail and nothing on the irs site yet.

 

[Dino]

Here's what I see on my account.

This is what is on my IRS, no transfer

 

[TaxmanHog]

This is what is on my IRS, no transfer

Awesome, go ahead and create the 8936 claiming the credit, you'll enjoy the credit against your gross tax balance, hopefully that turns into a nice refund or lower net balance due based on personal situations

 

[broteus7]

I got the letter but the VIN is wrong and the dealership told me at the time they could not do the EV tax credit at time of sale and that I can claim it when I file taxes. I'm a bit upset about this.

 

[F150Flash]

Love seeing the agency working proactively by sending out this notice!

I’m happy they are sending these as well. I hope I don’t get one. I fought with the dealer for over 8 months but finally got the notice that they reported the sale. So I feel better about the likelihood I’ll get the credit on my return. If I get the letter my next stop will be the dealer.

 

[TaxmanHog]

I got the letter but the VIN is wrong and the dealership told me at the time they could not do the EV tax credit at time of sale and that I can claim it when I file taxes. I'm a bit upset about this.

Contact the IRS with the fact that the VIN on the letter is wrong and does not match the clean vehicle you purchased, they can guide you on a solution, ie. filing the 8936 and reconciliation of the credit.

 

[astrand1]

I got the same letter today.

I wasn't sure what happened to the tax credit when I bought the truck Jan 4, 2024.
The dealer didn't give me the "required" seller's report.

They knocked $7500 off the price but listed it as a 'down payment' on the invoice.
So I was unsure whether they took the credit or not.

I contacted the dealer this month and asked about the seller's report and asked them to send it to me if they had generated one or tell me if they had not - but then heavy snow happened, so I still haven't heard from them.

I noticed the IRS letter says:

So I am still wondering.
I don't have any paperwork proving I elected to transfer it to them - it would have to be signed by me I believe.

So I am wondering if they filed to collect it without getting my signature on the required paper showing I elected to transfer it to them?

My understanding is the “required sellers report” was no longer required. In fact I did read somewhere on the irs site (which I can’t find right now) is that you no longer have to file anything with the irs as stated in the letter like the OP got. But I have a tax guy and that’s why I pay him. I’ll give him everything as I do each year and let him figure it out.

 

[chl]

As to your assertion that you needed to sign something, you negotiated a deal, you must have discussed the plan to use or defer transfer of the credit at time of sale, your [/SIGNED} the P&S agreement, seems good to me.

Assuming this choreography did not happen in your personal sale, or with many others members, you still signed the P&S with an understanding of the credit to be or not be used, then the finance office support clerk input these details an hopefully generated the sales report and mailed you a copy, or handed it to you from the closing jacket the FMCC requires they keep for corporate audits and state sales tax compliance reviews

The short response is the salesman said the dealership was not set up for the up front tax credit but they would reduce the price by the $7500 anyway during our telephone discussions before purchase in Dec 2023.

At delivery, the tax credit was never discussed in the 'negotiations' or expressly listed as such on the sales forms.

There was an extra $7500 reduction in price, but it was combined with out $1500 down payment and $500 deposit for a total down payment entry of $9500 listed as the "down payment" on the sales form.

We never got any of the required IRS reports confirming the tax credit was transferred at delivery or later, and I have inquired several times about that - their EV guy is always out of the office it seems.

------the details----

1) During "negotiation" in emails and on the phone in Dec 2023, I asked about getting the tax credit at purchase/up-front. The salesman was unsure about it, said they hadn't gotten set up to do it.

2) When we picked up the vehicle Jan 4, 2024, and finalized the paperwork, there was no mention of the tax credit in any of the written documents. It was our understanding from conversations with the salesman that the dealership had not gotten set up with the IRS yet, but they were giving us an additional $7500 off the price anyway, so that we wouldn't go to a dealer that was set up with the IRS and they'd lose the sale.

3) During the document signing and delivery, when I took possession of the vehicle, the dealership put on the "VIRGINIA BUYERS ORDER-A," a down payment amount on a line called "ADDITIONAL DOWN PAYMENT ON DELIVERY" of $9500. That amount included a $500 deposit made a few days earlier and a $1500 down payment made the day of delivery. The remaining $7500 was not specified anywhere on the document, or in any other documents I was given.

There is no document called a "P&S" agreement anywhere in the paper work I have. Perhaps the Virginia Buyers Order-A is equivalent to the P&S document you refer to?

Nowhere on the document, or other paperwork, does it expressly say we transferred any tax credit to the dealer. It was our understanding the dealer had not gotten set up with the IRS to formalize a transfer of the credit with the required process.

However, if there was a miscommunication and the dealership WAS set up to do the IRS reporting, and the lack of any explicit indication that we WERE transferring the credit on the sales documents was just an oversight, and the $7500 portion of the "down payment" was that transfer and not a dealer discount, I would like to have that affirmed by the dealership.

The finance office did not give us the required reports with the sales paperwork, or mail them to us later, or email them, and I have been trying to get copies, if they exist, sent to me since early January.

4) The IRS says:

-----

"When you take possession of the vehicle, the seller must give you a time-of-sale report and a copy of the confirmation the IRS provides when it accepts the time-of-sale report. This gives you proof of your purchase's eligibility for the credit, the amount of the credit available for the specific VIN you are purchasing...For vehicles placed in service in 2024 or later, 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....

Each report must include a declaration of accuracy signed by a representative of your business with binding authority. The declaration must read:

“Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.”

Dealerships should provide a copy of Form 15400 to the customer at the time of sale. They should also retain a copy for their internal records, as these copies will be used for IRS reporting.

Customers should retain a copy of Form 15400 for their records. This form will be crucial when they file their taxes to claim clean vehicle credits.

The Seller report must be submitted through the IRS portal within 3 calendar days of the sale (at the time of sale if possible) ...

-----

5) We did not receive such documents at taking of possession, nor at any time subsequent.

As I mentioned above, I have been in contact with the dealership since early January 2024, to try and ascertain if perhaps they actually DID claim a transfer of the credit, whether they did or did not file with the IRS and generate the required forms and maybe just did not give us copies. However, so far, the "EV guy" has always been out of the office at the time I ask about it.

6) Worst case scenario might be that the dealership filed late for the tax credit, outside of the 3 day requirement, and is "fudging" things (dates maybe?) to get the tax credit. If I do not hear from their "EV guy" and/or receive the IRS reports within a reasonable time, at least before filing our return, I will have to assume that could be the case.

Then I have to report the situation to the IRS.

I am an attorney, but even if I weren't, I would not be willing to risk being a party to what could be construed as tax fraud.

 

[chl]

My understanding is the “required sellers report” was no longer required. In fact I did read somewhere on the irs site (which I can’t find right now) is that you no longer have to file anything with the irs as stated in the letter like the OP got. But I have a tax guy and that’s why I pay him. I’ll give him everything as I do each year and let him figure it out.

The IRS web site still says the seller has to file with the IRS and give the buyer a seller's report and confirmation the sale was reported.

The forms one has to file with the tax return (2024 version copies attached) ask for the amount shown on the seller's report (SCHEDULE A Form 8936), for example:

"4a Did you transfer the credit to the dealer at the time of sale?
Yes. Enter the transferred amount shown on the seller’s report
No. Go to line 5."


And the Instructions say:

"Vehicles placed in service beginning January 1, 2024.
For vehicles placed in service after December 31, 2023, the seller must file the seller report through the IRS Energy Credits Online (ECO) portal."

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

 

[TaxmanHog]

I am an attorney, but even if I weren't, I would not be willing to risk being a party to what could be construed as tax fraud.

DEEP BREATH................
Log onto your IRS ONLINE account and look for the 2024 report to confirm that they either reported a qualified sale that DID or DID NOT involve assignment of the credit to the dealer.

If you Don't have an account, you can create one.

https://www.irs.gov/your-account

 

[21st Century Truck]

DEEP BREATH................
Log onto your IRS ONLINE account and look for the 2024 report to confirm that they either reported a qualified sale that DID or DID NOT involve assignment of the credit to the dealer.

If you Don't have an account, you can create one.

https://www.irs.gov/your-account

I just checked my online IRS account after getting the paper letter. It all checks out.

Thanks TaxManHog!

(BMW K-bikes always! BMW K-bikes forever!)

Sponsored