Clean car credit

[Skexis]

Any fix yet for this issue?

[BrittanyS]

If filing with the EV credit, there are several reason why the return could be rejecting.  

The rejections happen due to the IRS business rules when either:

• VIN is incorrect (Rejection code F8936-030-01)
• Your tax ID and VIN do not match in the IRS database (Rejection code F8936-046)
• The credit type claimed and the amount entered on the Schedule A of Form 8936 is not matching the IRS database (Rejection code F8936-0047)
• The purchase date is inconsistent with the IRS database (Rejection code F8936-048).

Please follow these steps:

1. Check the report that you received from the dealer and make sure it is correct and matches what you have entered on your tax return. Dealers who sell vehicles eligible for a used (previously owned) vehicle credit under IRC 25E must f...
2. Contact the dealer and make sure that they provided the correct information to the IRS and/or that they did provide the sale information to the IRS.
3. If number 1 and 2 are true and the IRS still rejects your tax return, you will have to print and mail the return, including substantiating documentation for the claim of the credit.
    

See the links below for more information:

• Clean vehicle credit seller or dealer requirements | Internal Revenue Service  Sellers of eligible electric vehicles can help their customers take advantage of clean vehicle credits by registering with the IRS and meeting reporting requirements.
• Clean vehicle credit seller or dealer requirements | Internal Revenue Service  Sellers of eligible electric vehicles can help their customers take advantage of clean vehicle credits by registering with the IRS and meeting reporting requirements.
• Clean vehicle credit seller or dealer requirements | Internal Revenue Service.  Sellers of eligible electric vehicles can help their customers take advantage of clean vehicle credits by registering with the IRS and meeting reporting requirements.

@JWBizTax 

[Skexis]

So basically if all the information matches up between the Clean Vehicle Seller report and what is being put in TurboTax then the seller didn’t file the information or file it correctly?  Am I understanding this correctly?

[DianeW777]

Yes, you understand it correctly.  It's important to check with the dealer to be sure the information is correct and that they filed it with the IRS.

You have the option of mailing your return and including a copy of the Clean Vehicle Seller Report if your dealer confirms all is correct and submitted with the IRS.

• How do I file my return by mail?
• @Skexis 

[JJA222]

My tax return was rejected for same reason.  I am eligible nd my 2023 Bolt EV is eligible, but dealer neglected to enter VIN into IRbS database. Turbo Tax rejection error codes and messages re below:

SA-F8936-048 - The e-File database indicates this vehicle was not purchased during the tax period of the return.

SA-F8936-047 - Schedule A (Form 8936) credit amount does not match the type of credit reported in e-File database.

[Vanessa A]

The rejection is coming from the IRS when TurboTax tries to transmit, the IRS is saying this credit is an issue.

The 2023 is actually not eligible for the Used EV Credit if you bought it in 2024 as it must be at least TWO years old.  Basically, you would have to buy a 2023 in 2025 in order to claim the credit.  

To qualify, a vehicle must meet all of these requirements:

• Have a sale price of $25,000 or less. Sale price includes all dealer-imposed costs or fees not required by law. It doesn't include costs or fees required by law, such as taxes or title and registration fees.
• Have a model year at least 2 years earlier than the calendar year when you buy it. For example, a vehicle purchased in 2023 would need a model year of 2021 or older.
• Not have already been transferred after August 16, 2022 to a qualified buyer.
• Have a gross vehicle weight rating of less than 14,000 pounds
• Be an eligible FCV or plug-in EV with a battery capacity of least 7 kilowatt hours
• Be for use primarily in the United States

[JJA222]

Just to clarify, my 2023 Bolt was brand new, not used so I was claiming the credit for new EVs.

[Vanessa A]

If this was brand new and not used and qualifies for the New EV Credit, but you are being rejected because the dealer did not do the paperwork, you can attempt to mail in your return with the bill of sale that shows the VIN and all other required information.  The IRS may or may not allow you to claim the credit since the dealer did not do what they were supposed to on their end.  However, you will at least be able to get your return looked at if you mail it in.  They may send you a letter with a correction denying the credit, but if you want to attempt to take it, that would be the only way since the dealer didn't do their part and that is a requirement. 

The sale qualifies only if:

• You buy the vehicle new.
• The seller reports required information to you at the time of sale and to the IRS.
  • Sellers are required to report your name and taxpayer identification number to the IRS for you to be eligible to claim the credit.

[JJA222]

It would be great if I actually heard people were getting IRS to approve credit via a mailed tax return, but my guess is it will rejected like with turbo tax e-file rejection.  It is frustrating to lose out because of a procedural misstep done by dealer.  It’s also frustrating that IRS hasn’t stepped-in to address the oversight. It is looking more and more like small claims court will be my last option.

[jenandjul24]

Many Kia EVs are not eligible for the tax credit because they are manufactured in Korea.  I finally talked to the finance department at my dealership to troubleshoot this turbo tax error.  Do a simple google search for your car and the google AI will clarify it (it seems to be accurate.  Turbo tax should be able to update their system to give the proper error message or something.  It should not say "incorrect VIN" when the VIN is correct. 

[DawnC]

There have been some updates regarding the EV credits -  Taxpayers who were unable to claim the credit previously for the 2024 tax year due to the lack of a Form 15400 should contact their automobile dealer now to obtain the report while the portal remains open for dealers to submit their 2024 seller reports.   

According to an alert issued by the National Automobile Dealers Association, the IRS has now reopened the portal for dealers to submit the 2024 Form 15400 and is waiving the 72-hour submission deadline.  It is unknown how long the portal will remain open, so you should act quickly.   @JJA222   

[JJA222]

Thanks, Dawn.
The dealership mailed me my $7500 check, but I’m still waiting for the tax form 15400 to arrive.  I will feel better to have the tax form in hand before I make another attempt to submit my tax return.  I am very happy to have the money, but want to make sure I don’t have any IRS issues. Thank you, again.