I'm totally confused what to do with form 8936 - Clean vehicle credits

[rwells3663]

Hello,

following up here for next steps

[MonikaK1]

If the IRS Notice is just asking you to provide a Form 8936 and Form 8936 Schedule A, and providing a time frame and address or other method to respond, then follow the IRS Notice instructions instead of amending your return. Submit any information requested within the time frame and by the method requested in the notice. If you claimed the credit on your return and are not entitled to it, explain that in your response.

This is a form of correspondence audit. After you submit the requested documents, IRS will respond either closing the audit or proposing adjustments to your return.

See this tax tips article  and this help article for more information.

@rwells3663 

[Mls2008]

Resolved: I was able to use TurboTax and fill out my vehicle information to populate the Form 8936 and Schedule A. I was able to e-file both fed and state returns and have had both accepted and processed accordingly. Thank you!

[rwells3663]

Can I get the form from my already submitted return and change the no to a yes and mail it? For clarity if I go in to amend and change the credit option to Yes transferred to dealer it generates the 8936 and the 8936 Schedule A, I am asking if I can retrieve this doc from the print center and send it to the IRS. The normal form seems a bit more complicated blank so its helpful to have everything prepopulated. 

[Vanessa A]

Yes.  If the IRS is just asking for the form 8936 and 8936 Schedule A, then yes, you can go in to amend and change the credit option to Yes transferred to dealer so it generates the 8936 and the 8936 Schedule A, then you can retrieve this doc from the print center and send it to the IRS. 

[RC100]

I also received an IRS Notice CP99A indicating I elected to transfer clean vehicle credit to the dealer and asking me to fill out form 8936. However, I didn't elect to transfer any credits to this dealer and I didn't even know tax credit could be transferred when I purchased the EV. I am pretty sure I didn't elect to do that as I knew I am not qualified for the EV tax credit since 2020. The dealer package the credits as their own incentives to target high income buyers who are not qualified for the credit. In this case, do I still need to file form 8936? I feel uncomfortable to file my tax with false information since I really did not elect to transfer credit to the dealer. 

[Vanessa A]

No.  If you did NOT transfer the credit you should NOT fill out a form and give false information.  

If you did not elect to transfer any credit, then you need to respond to that notice from the IRS and let them know that you did not do this and it is fraud.  

[RC100]

I did follow the instructions on CP99A to email IRS with supporting documents. The person from IRS advocacy told me that I have to pay back the credit since the dealer did lower the MSRP by $7500 and I am not qualified for that. Even I did not elect to transfer the credit to them. Actually I didn’t even know tax credit could be transferred at that moment. I am confused how to pay back. I don’t feel comfortable to fill out form8936 with false info but IRS wants me to pay back the credit. How can I do that?

[AnnetteB6]

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 

[RC100]

I only signed and got copies of 2 documents. One is DMV and the other is purchase contract. None of these documents showing I elected to transfer the credit. On the price break down section, they put $7500 EV tax credit together with other rebates in the rebate section. No time of sale report or form15400 provided by the dealer which is required according to IRS guidelines. I did follow the CP99a instruction to email the detail with documents (showing I told the salesperson I am not qualified for the credit) to irs.clean.vehicles.buyers@irs.gov. No response. I am going to e-file my tax, how do I write a letter to IRS to explain? The IRS advocate person told me that dealer does not need to verify buyer qualifications for the credit. What they need is just the buyer SSN and enter it on the clean vehicle portal without buyer involvement. They can get the money in 72 hours and the rest would be on buyer if the buyer is not qualified. It is the scam that happening in 2024 after the rule changed (tax credit transfer)by IRS. I don’t know if I still need to report form8936. If I skip that form when filing,  will IRS ask me to fill out that form later?

[DaveF1006]

According to IRS guidelines, if you did not elect to transfer the credit at the time of sale, you may still need to file Form 8936 to claim or report the credit. If you skip the form, the IRS may request it later, especially if there are discrepancies in their records. Filing Form 8936 proactively might help clarify your position and avoid delays or complications.

[RC100]

I use Turbotax and answer I didn't elect to transfer credit to dealer but my AGI is over the limit and end up no form 8963 was created.  It says I am not qualified for the tax credit and no form was generated. I don't know  how to file. 

[MarilynG1]

You should still get a Form 8936 in your return, showing a credit amount of $0.  If you're using TurboTax Online, clear your Cache and Cookies and step through the Energy Efficient Vehicle Credit section again.  

If this applies, in the left-side menu, go to Tax Tools > Tools, then choose 'View Tax Summary' from the pop-up.  Back at the left-side menu, choose 'Preview my 1040' and scroll through your return to see if Form 8936 generated for you. 

@RC100 

[Kat1010]

my EV credit keeps getting denied and it’s saying it’s because of code SAFA8936–048–047 

[Vanessa A]

This code means your dealer did not upload your information to the IRS system so you could claim the credit.  The IRS is temporarily allowing dealers who did not upload the paperwork within the three day window to do so.  You should contact your dealer to get them to do the paperwork so you can claim the credit.