Electric drive vehicle credit 8936 decreased/rejected by IRS

[KillaWhat]

My $7,500 credit got rejected as well (and have the tax liability), 2 weeks later, still haven't received the letter, and keep getting put on hold when trying to call them.

What did you submit as supporting documentation?

Nothing. TurboTax asked for the VIN #, invoice numbers, that's it. Just got off the phone with them, they are absolutely useless. Asked again if we were supposed to send in other documentation, they said no. They insisted I call the Treasury Offset Program department (guess they didn't believe me when I said I had no outstanding debts to the gov), which I did, and the automated system indicated all is fine.

I also called the IRS, and they said the numbers look fine, it just wasn't processed. IRS also said they won't send us a letter explaining the problem either.

This is really frustrating for sure. This was the first (and last) time I ever used TurboTax.

I have 30 years of dealing directly with the IRS.
This is free advice; heed it.

You can stand your ground, criticize the "bury them with valid paperwork" theory; you can say it's the IRS's responsibility to know the car qualifies, and on and on and on.
But those of us who submitted a whole justification package had NO problems with the credit.

At this level, consider the IRS the lowest common denominator.
You have to tell them a story; Lead them through it.

Once upon a time:
I bought this car (Bill of sale)
It qualifies for a tax credit (IRS's determination that the Leaf qualifies, printed from their own site)
http://www.irs.gov/Businesses/30D.-New-Qualified-Plug-in-Electric-Drive-Motor-Vehicles-%E2%80%93--Nissan-North-America" onclick="window.open(this.href);return false;
I Actually took delivery of the Vehicle (Registration, Insurance, Source of funds)
And here is your form filled out correctly (form 8936)
http://www.irs.gov/pub/irs-pdf/f8936.pdf" onclick="window.open(this.href);return false;
The End.

Bitch all you want; say it shouldn't be this way, but if you want to get results in life, you have to play to your audience.

They WANT to reject the credit.
So try to answer all their questions UP FRONT.
You know; "But what about... oh here it is. But did they.. , no, here is proof of that as well, etc"

If you give them a reason, they push the "Rejected" button every time for everything.
They can reject anything for any reason, and they do it all the time.
Then it's up to YOU to convince them.
Convince them up front and save the hassle.
Otherwise, it's a good way to trigger an audit too.

If they do it 1000's of times, and it's too complicated or a PITA, or time runs out..... on just 10% of what they reject, they win.

Save yourself the hassle, send them a "Package" up front and don't give them a reason.

or.... not, and enjoy your righteous moral high-ground :mrgreen: :mrgreen:

 

[mwalsh]

^ All well and good. But it still stands that they're essentially cheating the tax payer, and they should be as precluded from doing so as we are from cheating them.

 

[KillaWhat]

^ All well and good. But it still stands that they're essentially cheating the tax payer, and they should be as precluded from doing is we are from cheating them.

I'm not disagreeing with you.

 

[Yogi62]

FYI,

I filed via Turbotax on 3/3, and got the refund in the bank on 3/12.....for both Leafs, the one I bought in January 2013 and traded in April 2013 for the second Leaf.

So far so good....

 

[lion]

Thanks for the advice KillaWhat, it's definitely very sound, and I wish I did send in the extra data just to avoid having to wait several more months to get my money back. Lesson learned, hopefully I can get this straightened out, but it's definitely going to make me think twice before I buy another EV and/or reconsider my solar panels.

FYI,

I filed via Turbotax on 3/3, and got the refund in the bank on 3/12.....for both Leafs, the one I bought in January 2013 and traded in April 2013 for the second Leaf.

So far so good....

This is just maddening, why the hell would TurboTax give me such a hard time when asking them for help, when other TurboTax customers don't seem to have any issues

 

[mwalsh]

Thanks for the advice KillaWhat, it's definitely very sound, and I wish I did send in the extra data just to avoid having to wait several more months to get my money back. Lesson learned, hopefully I can get this straightened out, but it's definitely going to make me think twice before I buy another EV and/or reconsider my solar panels.

Nobody I know of has had the same issue when it comes to claiming the credit for a PV installation. Which is all the more surprising since there is more verifiable information the IRS could use on form 8936 than there is on the form for PV. Everyone knows that a solar panel doesn't have a VIN number!

 

[lion]

So a follow-up call to TurboTax revealed nothing. They can't/won't do anything to help. My wife is convinced that form 8910 is the correct for, because the numbers don't look right on 8936. It's difficult to argue with her considering IRS rejected our 8936.

Does anyone have better contact information, or a copy of a filled-out 8936? Can someone confirm that 8910 is not to be used in any circumstances when dealing with a 2013 Nissan LEAF?

Thanks guys.

 

[davewill]

Does anyone have better contact information, or a copy of a filled-out 8936? Can someone confirm that 8910 is not to be used in any circumstances when dealing with a 2013 Nissan LEAF?

The instructions for form 8910 clearly state it's for hydrogen fuel cell vehicles:

Alternative Motor Vehicle
An alternative motor vehicle is a vehicle with at least four wheels that qualifies as a qualified fuel cell vehicle.

Qualified fuel cell vehicle. This is a new vehicle propelled by power derived from one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel, and that meets certain additional requirements.

http://www.irs.gov/pub/irs-pdf/i8910.pdf" onclick="window.open(this.href);return false;

Not the LEAF.

 

[lion]

Does anyone have better contact information, or a copy of a filled-out 8936? Can someone confirm that 8910 is not to be used in any circumstances when dealing with a 2013 Nissan LEAF?

The instructions for form 8910 clearly state it's for hydrogen fuel cell vehicles:

Alternative Motor Vehicle
An alternative motor vehicle is a vehicle with at least four wheels that qualifies as a qualified fuel cell vehicle.

Qualified fuel cell vehicle. This is a new vehicle propelled by power derived from one or more cells that convert chemical energy directly into electricity by combining oxygen with hydrogen fuel, and that meets certain additional requirements.

http://www.irs.gov/pub/irs-pdf/i8910.pdf" onclick="window.open(this.href);return false;

Not the LEAF.

Yea good point, I missed that one somehow, thanks!

This is going to be fun ...

 

[KillaWhat]

yep!
8936 is THE form.

 

[WMTribe90]

FWIW, wife and filed using Turbo Tax an received the full $7,500 federal credit to our bank account within two weeks of filing. We did not provide any additional documentation, beyond what was requested by Turbo Tax. Suppose we could always be audited down the line, but no complaints right now.

 

[lion]

Yea most folks don't seem to have a problem. I guess I need to keep calling IRS until I find someone who has experience with this form. Frustrating as hell, but out of my control.

I would be very thankful if anyone would be willing to share a copy, via PM, of their form (with identifying/personal info removed of course, but there isn't much data to fill in).

 

[mattyc7]

An update on my status: After several months of fighting with the IRS, and them swearing up and down that various forms and statutes apply that did not, we got our full refund right before Christmas. If my wife was not a CPA, I don't know what I would have done.

I would say the lesson learned from my case and others is (1) you a due your refund (2) the tax laws have gotten so complicated that the IRS doesn't even understand them.

Perserve, and seek professional help as need be.

 

[yortch]

Good news! After exactly 3 months of e-filing today the full EV credit was deposited! It was very disappointing having to go through the rejection process. I would seriously consider leasing vs owning next time, which is not right because I'm very happy owner. I understand only the minority goes through this but if the IRS is not able to implement the tax code correctly, they really need to make this a rebate at the time of purchase, period!

[01/30/2014]: e-Filed using TaxACT
[01/31/2014]: return accepted by IRS
[02/24/2014]: refund accepted by IRS with the following notice: “The balance of your refund, [$ amount minus $7,500 credit], was sent to your bank on February 26, 2014. You should receive a notice dated February 24, 2014 that explains the changes made to your tax return”.
[03/05/2014]: Received notice CP12 by mail: “We have disallowed the amount claimed as Qualified Plug-in Electric Drive Motor Vehicle on Line 53, Form 1040. To qualify for the credit, your vehicle must have been placed in-service after December 31, 2008 and before January 1, 2010.” :evil:
[03/06/2014]: Replied to CP12 notice by mail explaining why I was eligible for the tax credit :x
[03/10/2014]: Information was received by IRS (confirmed via Telephone) :|
[04/11/2014]: Received letter indicating that they needed an additional 45 days to review my case.
[04/30/2014]: EV credit deposited to account (no official IRS notice received yet)

 

[echicago13]

quick question regarding IL state rebate/credit, does the vehicle have to be bought from IL dealer to qualify for the state rebate. I am asking as, I am thinking of buying it from a out of state dealer due to attractive price and wanted to see if it would still qualify for the IL tax rebate.

 

[rsbrax]

The IRS has proposed to disallow the $7500 tax credit on the purchase of my 2012 Nissan Leaf.
I use the vehicle for personal use and not for business.
Anyone else successful filing Form 8936 and not claiming a business tax credit?

This has been an ordeal and the IRS has taken more than a year to respond at all.
The IRS first assumed I filed a Mortgage Tax Credit by mistake and tried to disallow on that basis.

Now they claim purchase date of April 27, 2012 is not valid.

 

[KillaWhat]

The IRS has proposed to disallow the $7500 tax credit on the purchase of my 2012 Nissan Leaf.
I use the vehicle for personal use and not for business.
Anyone else successful filing Form 8936 and not claiming a business tax credit?

This has been an ordeal and the IRS has taken more than a year to respond at all.
The IRS first assumed I filed a Mortgage Tax Credit by mistake and tried to disallow on that basis.

Now they claim purchase date of April 27, 2012 is not valid.

No requirement for business use.
If you submitted the bill of sale, source of funds, title, registration, and a copy of the IRS determination that the vehicle qualifies, then there should have been no problem.

Can I ask why you are dealing with the credit on a MY 2012 vehicle as we approach 2015?

 

[KillaWhat]

quick question regarding IL state rebate/credit, does the vehicle have to be bought from IL dealer to qualify for the state rebate. I am asking as, I am thinking of buying it from a out of state dealer due to attractive price and wanted to see if it would still qualify for the IL tax rebate.

I would bet NO.
Registration in IL would be required, as that is the point where taxes get assessed.

 

[janlee]

I purchased a nissan leaf under my name and I owned an S corp. I was wondering since I use the vehicle 50% of the time for my business can I take the federal electric vehicle credit 50% on my business tax return and 50% on my personal or do I have to take it off from my personal tax return since the title is under my name only?

 

[epirali]

I purchased a nissan leaf under my name and I owned an S corp. I was wondering since I use the vehicle 50% of the time for my business can I take the federal electric vehicle credit 50% on my business tax return and 50% on my personal or do I have to take it off from my personal tax return since the title is under my name only?

Doesn't the S corp all flow through through to you personal anyway? So why does it matter unless you are not the sole owner?