To avoid financial losses due to missed time-of-sale reports for clean vehicle credits, dealers can take several proactive steps:
Key Strategies for Dealers
- Ensure Timely Reporting:
- Dealers must submit Time of Sale reports through the IRS Energy Credits Online portal within three calendar days of the sale date.
- Provide buyers with a copy of the accepted seller report within three calendar days of submission.
- Promptly Solve Technical Issues:
- Regularly check the status of your ECO portal registration to avoid pending statuses that can delay report submissions.
- Contact the IRS via secure messaging in the ECO portal to address technical issues promptly.
- Document Delays:
- If unable to submit a report within the deadline, submit it as soon as possible and include an explanation for the delay.
- Be prepared to provide additional documentation if requested by the IRS.
- Utilize Available Relief:
- The IRS has reopened the portal to allow for late submissions of 2024 transactions, providing a remedy for dealers and buyers who faced issues due to missed deadlines.
- Take advantage of this window to submit any outstanding reports and ensure compliance.
- Educate Staff and Buyers:
- Train staff on the reporting process to avoid misunderstandings and missed deadlines.
- Inform buyers about the importance of receiving and reviewing Time of Sale reports to ensure they can claim tax credits correctly.
By adopting these strategies, dealers can minimize financial losses and ensure smooth transactions for clean vehicle credits.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-can-dealers-avoid-financial-losses-due-to-missed-time-of-sale-reports/
