@Franciscog wrote:
We purchased 2 hybrid vehicles in 2017- 2017 Toyota Prius IV and Toyota Rav4 XLE.. again, both hybrid. We received the tax credit for both of them, however, earlier this year we received a letter from IRS stating that one of the vehicles did not qualify as THEY stated our tax preparer put "ELECTIC PLUG IN VEHICLE" ..which neither is. They requested purchase information and i sent the information regarding the Prius. I just received a letter 525 stating i owe $8606 as the car did not qualify.
Does it qualify? Can you use 2 hybrid vehicles for the deduction. What do i need to do to "fight" this as i don't have $8K!! HELP !!
The IRS is correct. Neither of the Toyota's qualify for the Qualified Plug-in Electric Drive Motor Vehicle Credit
Go to this website for qualified vehicles - https://www.fueleconomy.gov/feg/taxevb.shtml
If your 2017 tax return shows the credit on Form 8936 and on your personal tax return Form 1040 line 54 you will have to repay any credit which is not allowed.
Contact the IRS and speak to an agent so that you will know what your next steps should be in re-paying the credit.
You can set up a payment plan with the IRS so that you can pay over time. Go to this IRS website for an online application - https://www.irs.gov/payments/online-payment-agreement-application
