Yes, this rejection happens when your clean vehicle information (SSN of purchaser, credit amount, date of sale) doesn't match the IRS data for the Clean Vehicles sold. The IRS compares the information you enter with information in their database. When the VIN is missing or mismatched, your return gets rejected.
Sellers of clean vehicles are required to file a Clean Vehicle Seller Report with the IRS and furnish a copy to the buyer/taxpayer. This is required for a vehicle to be eligible for a clean vehicle credit. The Clean Vehicle Seller Report is a detailed one-page form that gives all the details to the IRS about the buyer, seller, and the specific clean vehicle (VIN number, make, model, etc.).
What needs to be done:
- Find your Clean Vehicle Seller Report (dealer may have given you similar paperwork) and confirm relevant information. Any discrepancies in the information should be brought up to the Seller of your vehicle.
- Review your return input to see if you missed typed the information. You can do this under Deductions and Credits, Cars and Other Things you Own and then review the input in the topic Energy-Efficient Vehicles.
- If your information does not match what you inputted, fix the error and resubmit the return.
- If the Vehicle Seller Report and TurboTax input match, further steps are needed as follows:
- Confirm with your Seller that they filled with the IRS the Clean Vehicle Seller Report. The IRS won't issue you a credit without the proper information reported to the IRS.
- If you didn't get a copy of the Clean Vehicle Seller Report (or something similar) it may mean you purchased an electric vehicle that is not eligible for a clean vehicle tax credit. For example many new vehicles won't qualify as they weren't assembled in North America. For previously-owned clean vehicles, the purchase price must be under $25,000 and the model year can't be less than two model years old.
- If you have any inputted vehicle information that doesn't qualify for a clean vehicle credit, you can delete the vehicle in the Energy-Efficient Vehicles section and proceed to resubmit your return for e-file.
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