If dealers fail to file time-of-sale reports for clean vehicle purchases, customers can face several consequences:
- Inability to Claim Tax Credits: Customers who opt to claim the tax credit manually during tax filing cannot do so if the dealer has not submitted the required time-of-sale report. The IRS will not match the vehicle identification number (VIN) without this report, leading to discrepancies in tax returns.
- Difficulty with Reimbursements: In cases where dealers apply the credit at the point of sale, failures to file reports mean dealers cannot secure reimbursement from the IRS. This financial strain on dealers can impact future customer sales and service.
- Delays and Hassles: Customers may need to spend additional time and effort to rectify the situation by contacting dealers and the IRS to resolve discrepancies and facilitate the filing process, which can be time-consuming and frustrating.
- Impact on Financial Planning: Without access to the tax credits, customers may need to adjust their financial planning, as they may not receive the anticipated credit, potentially affecting their ability to afford or maintain their vehicle.
However, recent updates have provided some relief. Dealers can now submit corrected or previously unsubmitted time-of-sale reports, which should help mitigate these issues for both dealers and customers.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-consequences-for-customers-if-dealers-fail-to-file-time-of-sale-reports/
