Yes, you may still claim the tax credit if the dealership made an error, but it depends on the nature of the error and IRS responses to corrections. Here’s what you need to know:
If the Dealer Missed the 3-Day Filing Deadline
Dealers must submit seller reports to the IRS within 3 days of sale for the buyer to qualify. If they fail:
- Buyers are currently ineligible unless the IRS allows retroactive submissions.
- Some buyers report the IRS might send guidance via mail within 60 days of rejection, but this isn’t guaranteed.
If the Dealer Submitted Incorrect Information
Errors like VIN mismatches or missing data cause IRS rejections:
- Request a copy of the submitted report from the dealer and cross-check details.
- For scrivener’s errors, dealers can update reports via IRS Energy Credits Online.
- Mismatched eligibility data (e.g., price, battery size) requires dealer correction to claim the credit.
Next Steps for Buyers
- Contact the dealer immediately to verify filing status.
- File an amended return if corrections are made, but only after the dealer updates the report.
- Small claims court may be an option if the dealer refuses to cooperate.
- Monitor IRS updates: The agency has occasionally allowed retroactive fixes for systemic issues.
IRS Compliance Issues
Dealers must resolve unfiled returns or unpaid taxes before participating in the advance payment program, but this doesn’t directly block buyer claims. For buyers, eligibility hinges on proper dealer paperwork, not the dealer’s tax compliance.
Example: In Bowie, MD, a buyer sued a dealership for failing to file paperwork, highlighting the need for legal action when dealers default.
Key Takeaway: Act quickly to resolve errors, as most claims depend on timely and accurate dealer submissions.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-still-claim-the-tax-credit-if-the-dealership-made-an-error/
