Buyers of electric vehicles who were unable to claim federal EV tax credits for 2024 now have a remedy, according to an alert from the National Automobile Dealers Association (NADA).
The NADA, which “advocated aggressively” for an IRS fix, says the agency has reopened the IRS Energy Credits online portal for dealers to submit time-of-sale reports for EVs sold last year. Only a dealer can sign up for the system, which is available now.
The problem came to light earlier this year when the IRS began rejecting some 2024 federal income tax returns in which the filer tried claiming their qualified EV tax credit. Reportedly the denials occurred because of dealers’ problems with the IRS portal and time-of-sale reports submitted after the required three days.
Buyers who claimed the credit on their taxes are impacted, but so are dealers. In some cases, dealers are missing thousands of dollars they expected to receive when they provided the tax credit to buyers at the point of sale. But did not report the sale to the IRS in the required time frame.
“In both situations, customers are facing issues filing their tax returns because the return does not match a VIN in the IRS’s system. Absent relief, dealers would face significant financial losses, and customers would be unable to claim clean vehicle credits,” NADA said.
An IRS spokesperson, speaking to the Detroit Free Press, said that buyers who did not receive their time-of-sale report from the dealer should ask for one.
The CBM Auto Dealership Team can help you navigate the IRS’s updated Time of Sale reporting requirements for 2024 transactions. Contact Dan Keefer with any questions or to ensure compliance with confidence.
