feds rejected my EV tax credit

[astrorob]

i don't have any details yet, but i received a big package in the mail on saturday. there was no explanation, or even any english language description of what is going on, but from the numbers it's clear that they have rejected my $7500 EV credit. oh, and levied a $1500 fine for attempting to take the credit.

did this happen to anyone else, and how did you resolve it? one of the pages in the package states that proof of purchase is required, but this seems to related to business-related car purchases, not personal. i don't see anywhere on form 8936 where supporting documentation was required.

tomorrow i will call them and ask what the heck is going on.

 

[garsh]

There's a huge thread about this.
You are not alone. Grab a cup of coffee and read through that thread. Most people appear to be getting this issue resolved now. This is pretty late for you to be getting a rejection though.

 

[Volusiano]

I don't recall from that large thread that anyone was complaining about the IRS threatening them to levy a $1500 fine for attempting to take the credit, however. It was mostly notification from the IRS about the filing being audited and reviewed and their request for additional documents.

 

[mwalsh]

I don't recall from that large thread that anyone was complaining about the IRS threatening them to levy a $1500 fine for attempting to take the credit, however. It was mostly notification from the IRS about the filing being audited and reviewed and their request for additional documents.

Mine was a "demand" for the $7500 plus a penalty for under reporting, which I think was around $1500 (but I'd have to look). I recall it being a pretty intimidating document, and would imagine a few owners might be intimidated into paying up rather than trying to fight it.

 

[astrorob]

I don't recall from that large thread that anyone was complaining about the IRS threatening them to levy a $1500 fine for attempting to take the credit, however. It was mostly notification from the IRS about the filing being audited and reviewed and their request for additional documents.

Mine was a "demand" for the $7500 plus a penalty for under reporting, which I think was around $1500 (but I'd have to look). I recall it being a pretty intimidating document, and would imagine a few owners might be intimidated into paying up rather than trying to fight it.

whoops... sorry i missed the thread in the other sub-board!

sounds like it should work out OK, but i have not read the entirety of that other thread, just the last page or so.

yes, it's a 20% penalty or 1500.

anyway, i missed the *very last piece of paper* in the stack which is actually an explanation. they do want the registration and bill of sale. what had me tripped up is that form (886-A) references "Credits from form 3800" which is a business expense form, and i never filed form 3800.

i just finished talking to them and they alerted me to that form and just told me to send in my documentation. whether or not that's the end of it, well, who knows. i'll read the other thread.

 

[astrorob]

There's a huge thread about this.
You are not alone. Grab a cup of coffee and read through that thread. Most people appear to be getting this issue resolved now. This is pretty late for you to be getting a rejection though.

thanks - i'll read that.

i don't know why the rejection came so late. originally after i filed i got a short note from the IRS saying that they were delaying my full refund, but it made reference to an amount corresponding to the foreign tax credit i claimed. so they may have flagged the return for one thing initially and then the EV credit popped up after that.

 

[Cinnabar]

I don't recall from that large thread that anyone was complaining about the IRS threatening them to levy a $1500 fine for attempting to take the credit, however. It was mostly notification from the IRS about the filing being audited and reviewed and their request for additional documents.

I had the $7500 credit disallowed (asking for the Manufacturer's Certification) and as a result, a $1500 penalty (20%) for filing an inaccurate return.

 

[astrorob]

I don't recall from that large thread that anyone was complaining about the IRS threatening them to levy a $1500 fine for attempting to take the credit, however. It was mostly notification from the IRS about the filing being audited and reviewed and their request for additional documents.

I had the $7500 credit disallowed (asking for the Manufacturer's Certification) and as a result, a $1500 penalty (20%) for filing an inaccurate return.

did you get it resolved? at this point i know of no reason why they can legitimately deny the credit if you indeed own the car. by now the IRS must know that the leaf is completely eligible, right?

my tax guy says that in a lot of cases, the first time you have a problem like this (inaccurate return) if you make the case that it was an honest mistake they will sometimes waive the fine. in this case though, that should not be necessary of course.

 

[mwalsh]

anyway, i missed the *very last piece of paper* in the stack which is actually an explanation. they do want the registration and bill of sale. what had me tripped up is that form (886-A) references "Credits from form 3800" which is a business expense form, and i never filed form 3800.

At least they're now saying that registration and bill of sale are valid to show purchase for tax purposes. We who went before you had to figure that our for ourselves! So I guess we've paved the way for you guys in that respect (no thanks necessary).

 

[theaveng]

Typical. The government will hand-out 400 billion to random companies, 1/4 of which go bankrupt and never repay the money, but heaven forbid one of the citizens (from which all legitimate power derives) ask for a $7500 credit under the U.S. EV program. I love my country but hate my government.

 

[astrorob]

Typical. The government will hand-out 400 billion to random companies, 1/4 of which go bankrupt and never repay the money, but heaven forbid one of the citizens (from which all legitimate power derives) ask for a $7500 credit under the U.S. EV program. I love my country but hate my government.

yeah, whatever.

so because they made a bad investment in solyndra, anyone who wants to claim the EV credit should just get it without showing any documentation?

people are getting the credit, and this is going to get straightened out. don't get mad at the feds, get mad at the a-holes who claimed their F-150 was an EV.

 

[theaveng]

so because they made a bad investment in solyndra, anyone who wants to claim the EV credit should just get it without showing any documentation?

Not if the forms did not ask for any. And even if the IRS thinks proof-of-purchase are required, that's no reason to send out scary letters with $1500 fines. There's no reason for the agents to act like thugs & threaten citizens in that fashion. They are *employees* of the People and should give us some respect not fear.

BTW Solyndra was just one of hundreds of companies that never repaid those "green jobs" loans since they went bankrupt. Approximately 100 billion of our dollars (~$1000 per household) down the tubes is not something to just pretend never happened.

 

[astrorob]

so because they made a bad investment in solyndra, anyone who wants to claim the EV credit should just get it without showing any documentation?

Not if the forms did not ask for any. And even if the IRS thinks proof-of-purchase are required, that's no reason to send out scary letters with $1500 fines. There's no reason for the agents to act like thugs & threaten citizens in that fashion. They are *employees* of the People and should give us some respect not fear.

BTW Solyndra was just one of hundreds of companies that never repaid those "green jobs" loans since they went bankrupt. Approximately 100 billion of our dollars (~$1000 per household) down the tubes is not something to just pretend never happened.

once they discovered people claiming bogus cars, they started requiring backup documentation. if they erred at all it was in trusting americans to be honest.

must be hard going through life with such hostility and anger issues. anyway, thanks for playing. *plonk*

 

[planet4ever]

BTW Solyndra was just one of hundreds of companies that never repaid those "green jobs" loans since they went bankrupt. Approximately 100 billion of our dollars (~$1000 per household) down the tubes is not something to just pretend never happened.

I am sorry to hear that you have been so badly misled. I, too, would be angry if I thought $100 billion dollars had been thrown away. Fortunately, that is not true. The total allocation was $90 billion, and much of it has paid off very well indeed. The money has created more than 100,000 jobs and has improved energy efficiencies which will reduce our need for foreign energy for many years to come.

As for bankruptcies, there have been about a dozen, and the largest was Solyndra, which took less than 1% of the money. I haven't seen the total loss due to all the bankrupt companies, but I am sure it is far less than $5 billion. Ask any venture capital firm how they would feel about a 5% failure rate, and they'd say that would be fantastic.

I apologize for hijacking the thread, but I couldn't let that statement stand. Anyone who wants the real story on the $7500 EV tax credit should go to Electric drive vehicle credit 8936 decreased/rejected by IRS as garsh said early in this thread.

Ray

 

[theaveng]

I don't think the government should be wasting hardworking people's money on "venturing". It is a waste of money that people could be keeping in their pockets & buying food, paying rent, etc.

must be hard going through life with such hostility and anger issues. anyway, thanks for playing. *plonk*

I didn't realize this forum had User blocking capability. You would be "hostile" too if you've read the thousands of cases where the government busted-down people's doors and then shot the residents inside (including innocent children). Distrust of such an entity is a healthy habit. Being naive' and thinking the government never does anything wrong is the unhealthy trait.

 

[astrorob]

BTW Solyndra was just one of hundreds of companies that never repaid those "green jobs" loans since they went bankrupt. Approximately 100 billion of our dollars (~$1000 per household) down the tubes is not something to just pretend never happened.

I am sorry to hear that you have been so badly misled. I, too, would be angry if I thought $100 billion dollars had been thrown away. Fortunately, that is not true. The total allocation was $90 billion, and much of it has paid off very well indeed. The money has created more than 100,000 jobs and has improved energy efficiencies which will reduce our need for foreign energy for many years to come.

As for bankruptcies, there have been about a dozen, and the largest was Solyndra, which took less than 1% of the money. I haven't seen the total loss due to all the bankrupt companies, but I am sure it is far less than $5 billion. Ask any venture capital firm how they would feel about a 5% failure rate, and they'd say that would be fantastic.

I apologize for hijacking the thread, but I couldn't let that statement stand. Anyone who wants the real story on the $7500 EV tax credit should go to Electric drive vehicle credit 8936 decreased/rejected by IRS as garsh said early in this thread.

Ray

thanks for the clarifications but it won't help our rugged individuals who have visions of jackbooted thugs dancing in their heads. they'll be hiding behind the door with guns drawn, waiting for the doors to be knocked down. sadly, they'll never be important enough for this to happen to them. while they wait though, they can enjoy some nice MREs.

 

[theaveng]

they'll be hiding behind the door with guns drawn, waiting for the doors to be knocked down. sadly, they'll never be important enough for this to happen to them.

Too bad you didn't read all the stories where doors ARE knocked down by the government officers (and the citizens shot dead). Oh well. Continue to not read the news and not be informed.