AnnetteB6
Expert Alumni

Deductions & credits

The normal way to pay back the credit is to include the information on your tax return so that the repayment is included when you file.  

 

However, based on your statement that you did not know that you were transferring the credit to the dealer at the time of the sale, you should read your documents from the dealer very carefully and make sure that you did not inadvertently sign something that stated you were transferring the credit.  If it was included in the documents that you signed, then you do owe the money to the IRS and they will most likely send you a bill.  If they do not, you should contact the IRS to ask how to make the payment.  

 

But, if your documents from the car dealer do not show that you were transferring the credit to the dealer at the time of the sale, then you should write a letter to the IRS explaining the situation and include a copy of any paperwork from the time of the sale that may show that the dealer applied the credit without you transferring it to them.  This could be a fraudulent transaction on the part of the dealer if they are claiming you transferred the credit, but you did not.

 

@RC100 

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