If a dealer misses the three-day deadline for submitting a time-of-sale report for clean vehicle tax credits under IRS rules, the following outcomes may occur:
Immediate Consequences
- Customer issues: Buyers cannot claim tax credits if the IRS lacks the vehicle’s VIN in its system, whether they opt for an advance payment or plan to claim it during tax filing.
- Dealer reimbursement delays: Dealers applying credits at the point of sale may face reimbursement denials from the IRS until reports are submitted.
- Portal challenges: Dealers often encounter IRS Energy Credits Online (ECO) portal registration delays or unresolved “pending” statuses, compounding filing difficulties.
IRS Relief Measures
The IRS granted temporary relief in late 2024:
- Extended submission window: Dealers could submit overdue 2024 reports between November 25 and December 10, 2024, via the ECO portal.
- Post-deadline submissions: After the relief period, dealers must file late reports “as soon as possible” with an explanation for the delay, subject to IRS review.
- Voiding errors: Dealers can void incorrect reports within 48 hours of submission or request cancellations for vehicles never placed in service before specified deadlines (e.g., November 25, 2024, in some cases).
Ongoing Process
- Secure messaging: Dealers must use the ECO portal’s secure messaging for inquiries, though response times remain slow.
- Year-end urgency: The IRS emphasizes submitting delayed reports promptly to avoid processing bottlenecks during tax season.
Failure to comply risks customer disputes, audit scrutiny, and potential forfeiture of credit eligibility if the IRS rejects late submissions without valid justification.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-happens-if-a-dealer-misses-the-three-day-deadline-for-submitting-a-time-of-sale-report/
