If a dealer refuses to apply or submit paperwork for a tax credit, such as the EV tax credit, you can still claim the credit when you file your tax return yourself. Here are the key steps and considerations:
- Claim the credit on your tax return directly: If the dealer did not transfer or report the credit to the IRS (e.g., did not file the IRS Clean Vehicle Seller’s Report form), you can still claim the EV tax credit on your individual tax return by answering “No” to the question about transferring the credit to the dealer and then following the tax software prompts to claim the credit you qualify for.
- Gather required documentation: To claim the credit, make sure you have all necessary documents related to your vehicle purchase, such as the purchase agreement, proof of eligibility, and any certification from the dealer regarding the vehicle’s qualification, as you will need to provide these if requested by the IRS.
- If your tax return is rejected due to the credit: Sometimes, if the dealer has somehow already reported the credit but you were unaware, your tax return claiming the credit might be rejected. In this case, you would need to work with the dealer and follow IRS guidance to resolve the issue.
- Dealer compliance and reporting issues: Dealers must be tax-compliant and registered properly to submit seller reports to the IRS; if they are not, they cannot participate in advance payment programs for credits and might be unable or unwilling to file the necessary paperwork.
- If dealer refuses to cooperate: Some buyers have reported dealers ignoring the requirement to submit the VIN and sale paperwork to the IRS, which may prevent automatic credit application. In such situations, affected buyers have attempted to escalate the issue by contacting the IRS or their congressional representatives to seek resolution.
In summary, if the dealer refuses to apply the tax credit, you should file for the credit yourself on your tax return using the appropriate IRS forms and documents. Keep all purchase records handy, and if you face difficulties or rejection, contact the IRS or seek legal or tax professional advice. You can also escalate to your congressman if the dealer’s non-compliance affects many customers and causes loss of credit.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-should-i-do-if-the-dealer-refuses-to-apply-the-tax-credit/
