IRS Notice CP99D Transferred Tax Credit letter 2025

[Dino]

May want to wait a couple of weeks to see if you get a letter from IRS.
If a dealership claimed the the tax credit on your behalf, I am sure the IRS has a record and will send letter. If no letter, than good chance the tax credit for that vehicle has not been claimed yet.

I assumed you're saying they gave you a $7500 credit to reduce the price and close the deal cause they wanted the truck off the lot!!

How is the question

• was this a dealer funded price reduction
• did you pay them a deposit
• did you ask them to apply for the BEV credit

At this point I will see if I receive the IRS letter in the next couple of weeks, if I do or don't I will post it here.
It looks like other early January 24 buyers are posting issues so I will follow those also.

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[bmwhitetx]

At this point I will see if I receive the IRS letter in the next couple of weeks, if I do or don't I will post it here.
It looks like other early January 24 buyers are posting issues so I will follow those also.

I’m probably completely mistaken here but I thought to claim the credit yourself in 2024, the dealer still needed to file something on your behalf. Or was that optional?

I seem to remember a lot of posts last January where folks were buying and not getting the paperwork.

 

[Dino]

I’m probably completely mistaken here but I thought to claim the credit yourself in 2024, the dealer still needed to file something on your behalf. Or was that optional?

I seem to remember a lot of posts last January where folks were buying and not getting the paperwork.

I was one of those, I never received/saw any IRS form printed or digital when I made my purchase on 1/5/24. I talked to several dealerships who had no clue, the one I bought from said they would handle it, but obviously they had no idea either.

 

[TaxmanHog]

Or was that optional?

It is mandatory

 

[Brons2]

It is on my tax software (site) that I acquired an EV but transferred the credit to the dealer. Mine was a lease. I will review the final tax document package before submission, to make sure form CP99D is there.

I use freetaxusa.com, been using it for years.

 

[Dino]

It is on my tax software (site) that I acquired an EV but transferred the credit to the dealer. Mine was a lease. I will review the final tax document package before submission, to make sure form CP99D is there.

I use freetaxusa.com, been using it for years.

What month of 24 did you purchase/lease?

 

[BlueLightning]

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.

Got it, glad too.

 

[shutterbug]

It is on my tax software (site) that I acquired an EV but transferred the credit to the dealer. Mine was a lease. I will review the final tax document package before submission, to make sure form CP99D is there.

Correct me if I'm wrong, but tax credit on a leased vehicle goes to lease holder. There is nothing for you to do.

 

[Brons2]

Correct me if I'm wrong, but tax credit on a leased vehicle goes to lease holder. There is nothing for you to do.

Don't know, never leased anything before the 2024 calendar year, and my Mach-E was not eligible for the tax credit, so this is the first time with the Lightning that tax credits are coming into question on a vehicle purchase.

The lease holder is Ford Motor Credit, so I would still think I need to do this form.

Another question with the leasing is about the sales taxes, supposedly you can write them off, but I don't want to assume anything.

 

[farmtruck]

Correct me if I'm wrong, but tax credit on a leased vehicle goes to lease holder. There is nothing for you to do.

Brons2 is not incorrect. I also leased and my CP99D says my rebate was transferred to the dealer. In actuality, it was transferred to the leaseholder.
When I did the lease, there was a form declaring how the rebate was to be claimed and it stipulated that as a lease, any rebate eligibility would go to the lessor.
I was actually surprised to get the CP99D.

 

[TaxmanHog]

Brons2 is not incorrect. I also leased and my CP99D says my rebate was transferred to the dealer. In actuality, it was transferred to the leaseholder.
When I did the lease, there was a form declaring how the rebate was to be claimed and it stipulated that as a lease, any rebate eligibility would go to the lessor.
I was actually surprised to get the CP99D.

Did your letter have any mention of the lessor entity?

 

[Dino]

Did your letter have any mention of the lessor entity?

I wonder how many dealers signed digitally for buyers/lessee's without their permission? Anybody who gets these letters check everything. I have not received mine and doubt I will which will present a different problem.

 

[StevenC56]

I think if you discussed that you wanted to take the tax credit upfront during negotiations with your selling dealer and they gave you the credit as part of your down payment, it would be enough for them to do what they needed to secure the $7500 from the IRS. Depends on the State's regulations, but if you’re going to dispute that you are probably going to have a tough time with it.

 

[Dino]

I think if you discussed that you wanted to take the tax credit upfront during negotiations with your selling dealer and they gave you the credit as part of your down payment, it would be enough for them to do what they needed to secure the $7500 from the IRS. Depends on the State's regulations, but if you’re going to dispute that you are probably going to have a tough time with it.

If I don't receive the IRS letter that means the dealer did not report the transaction like they were required to do. How do you suppose I correct that over a year later. If I receive the letter all is good, but I have my doubts.

 

[StevenC56]

If I don't receive the IRS letter that means the dealer did not report the transaction like they were required to do. How do you suppose I correct that over a year later. If I receive the letter all is good, but I have my doubts.

What does you CPA say about the situation? I would contact (Or have your CPA do it) the IRS and ask if your VIN has been used to secure the tax credit to play it safe.

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