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Filing the $4000 Used EV Tax credit when Dealer refuses to report sale to IRS

Hey all,

I'm in the process of buying a used 2022 Tesla model 3 from a Chrysler dealer and want to be sure I get the $4,000 federal credit.  The dealer doesn't seem to want to submit the IRS forms...so I want to be sure I can still get it, even if they don't submit the paperwork

IRS site states that we need a time-of-sale report and that they should register their business via the button on this page:

https://www.irs.gov/credits-deductions/clean-vehicle-credit-seller-or-dealer-requirements

BUT I also found these step-by-step instructions on the IRS website that say what to do if the dealer does not give us a time-of-sale report.
https://www.irs.gov/credits-deductions/how-to-claim-a-clean-vehicle-tax-credit

1) Does this mean that I can claim the credit, even if the dealer does NOT register with IRS and report the sale of the car??? (assuming my income, the car, the sale, etc are eligible).  The language also mentions something about it being rejected due to a wrong VIN so just want to be sure I'd still qualify.

2) The dealer is also charging an $800 processing fee for title/tags/DMV and they're saying this is a legally allowable fee... Is this correct??? If not, it means that the sale price would be over $25,000 (sale price without the 800 processing is $24,900). 

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1 Reply
JotikaT2
Employee Tax Expert

Filing the $4000 Used EV Tax credit when Dealer refuses to report sale to IRS

The 2022 Tesla Model 3 does not qualify for the Used EV tax credit per the information in this link.

 

Therefore, you would not be able to claim the credit on your tax return since it is not a qualified vehicle.

 

As for the processing fees, that would depend upon the state rules where you live.  Please see this link for more details on how fees are calculated as well as for more information on what fees could possibly be negotiable.

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