IRS Notice CP99D Transferred Tax Credit letter 2025

[mrau]

Got this letter from the IRS today and glad to get it.

The notice is a reminder that I bought a EV in 2024 and transferred the tax credit to the dealer. This is new for 2024 tax year.
It also shows the tax form that I need to file in order to report the transfer.

Keep an eye out in your mail for this if you bought your truck in 2024 and transferred tax credit to the dealer at point of sale.

Copy of redacted letter is below.

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[Dino]

I guess I will soon find out if my dealer actually filed the paperwork last January 5th when I bought my qualifying new 2023 XLT Lightning. Best I can tell they just gave me the $7500 off (Z plan price) and never filed anything with the IRS. It was the only Lightning on their lot and they wanted it gone.

 

[Scorpio3d]

Got this letter from the IRS today and glad to get it.

The notice is a reminder that I bought a EV in 2024 and transferred the tax credit to the dealer. This is new for 2024 tax year.
It also shows the tax form that I need to file in order to report the transfer.

Keep an eye out in your mail for this if you bought your truck in 2024 and transferred tax credit to the dealer at point of sale.

Copy of redacted letter is below.

I received the letter as well!
And miracle of all miracles my NACS adapter from Ford

 

[TaxmanHog]

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

 

[chl]

Got this letter from the IRS today and glad to get it.

The notice is a reminder that I bought a EV in 2024 and transferred the tax credit to the dealer. This is new for 2024 tax year.
It also shows the tax form that I need to file in order to report the transfer.

Keep an eye out in your mail for this if you bought your truck in 2024 and transferred tax credit to the dealer at point of sale.

Copy of redacted letter is below.

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?

 

[chl]

I guess I will soon find out if my dealer actually filed the paperwork last January 5th when I bought my qualifying new 2023 XLT Lightning. Best I can tell they just gave me the $7500 off (Z plan price) and never filed anything with the IRS. It was the only Lightning on their commercial truck dealership lot and they wanted it gone.

I had the same issue - no seller's report, no paperwork showing I elected to transfer it to them.

But I got the IRS letter today.

In part it says:

So did the dealer claim it without my signature authorizing it?

I wonder.

 

[Dino]

Same thing here almost exactly, 1/5/24 though. I asked several times for paperwork and finally received mid February but no IRS paperwork and never signed any IRS paperwork. Dealers were in mass confusion or had no idea about how to handle the new credit rules this time last year.

 

[chl]

Yes my purchase was Jan 4, 2024.

The dealership salesman didn't know anything about providing the tax credit upfront,
but they gave me $7500 off the price listed as a down payment on the sales document.

I have asked them to tell me if they generated and filed a "seller's report" which the IRS requires for the tax credit.

I am also going to ask them to send me any papers I signed authorizing transferring the tax credit to the dealership. I do not remember seeing any or signing any, and it is not in my bundle of papers - I am meticulous about keeping that stuff.

So I wonder what the IRS will do if the dealership filed to get the tax credit without my signing any authorization form? It could be regarded as tax fraud.

I am waiting to hear back from the dealership before reporting to the IRS that I do not have any paperwork, or recall signing any, authorizing the transfer.

 

[TaxmanHog]

Seems the ignorance persists

 

[StevenC56]

Received mine in the mail last week.

 

[TaxmanHog]

https://www.irs.gov/pub/irs-pdf/p5900.pdf

 

[chl]

Seems the ignorance persists

Note the date of the video seems to be Aug 27, 2024, over 8 months after the rule went into effect.

The process was announced in the Fall of 2023 as I recall, giving short notice before Jan 1, 2024.
Dealerships had to register with the IRS, and I heard that there were issues with that process as well.
Some dealerships have fewer employees on site during the holiday season to figure that stuff out.

So it is understandable that a lot of them did not get up to speed by Jan 1, 2024.

 

[TaxmanHog]

Note the date of the video seems to be Aug 27, 2024, over 8 months after the rule went into effect.

The process was announced in the Fall of 2023 as I recall, giving short notice before Jan 1, 2024.
Dealerships had to register with the IRS, and I heard that there were issues with that process as well.
Some dealerships have fewer employees on site during the holiday season to figure that stuff out.

So it is understandable that a lot of them did not get up to speed by Jan 1, 2024.

The IRS ran seminars for dealers to attend which went over the process and data collection procedures, it wasn't a perfect implementation, and here we are.

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. You might have provided necessary documents let the salesman copy your personal ID or Drivers License, the F&I guy might have been set up to have you sit with them as the tried to sell you overpriced options to the finance package, but that would also be the PERFECT time for them to log into the sale reporting system input the data you provided and walked through the consent phase as shown in the video.

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

Again I point the finger of lax attitudes at dealerships

Back to the purpose of the CP99d, this is a great way to capture potential fraud of dealers saying a buyer elected a credit when they DID NOT elect transfer, for those in this scenario, follow the reporting mechanisms, especially is you believe you never benefited from the credit in the deal and were intent on claiming upon filing your tax return in the next several weeks.

 

[Dino]

My wife and I never saw any IRS paperwork on a screen or actual paperwork. In my sales agreement it says I provided a $7,500 cash down payment, nothing about it being a transfer of my tax credit to the dealer. After watching your video, is the dealership able to add my sale to the IRS website after the fact and sign my name digitally?
When we bought the truck we and the truck fully qualified for the credit and did want it applied to our purchase. If the dealer did not take the credit (which I do not know) I feel I should be able to if it was not important enough to them to follow IRS rules. I am pretty sure CHI feels the same way, his experience was exactly the same as mine, which makes me wonder if dealers were told to handle it this way the first week of January 2024.

 

[Karlos]

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

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