I bought an eligible vehicle from a dealer for the used car tax credit. (2022 Chrysler Pacifica PHEV). My return gets rejected. Any reason why?

[john-j-wisconsin1]

I didnt get any special documentation form the dealer. I asked, they said no additional paperwork is needed, which makes me believe they didn't submit anything. Do I have any recourse?

[NicolleR1]

Please clarify why is your return getting rejected. Reply to this thread with the IRS rejection code and/or any error rejection messages.

[john-j-wisconsin1]

SA - f8936-047

sa— f86936-046

sa - f8936- 048

is that what you mean?

[LeticiaF1]

Yes, this rejection happens when your clean vehicle information (SSN of purchaser, credit amount, date of sale) doesn't match the IRS data for the Clean Vehicles sold. The IRS compares the information you enter with information in their database. When the VIN is missing or mismatched, your return gets rejected. 

Sellers of clean vehicles are required to file a Clean Vehicle Seller Report with the IRS and furnish a copy to the buyer/taxpayer.  This is required for a vehicle to be eligible for a clean vehicle credit. The Clean Vehicle Seller Report is a detailed one-page form that gives all the details to the IRS about the buyer, seller, and the specific clean vehicle (VIN number, make, model, etc.). 

What needs to be done: 

1. Find your Clean Vehicle Seller Report (dealer may have given you similar paperwork) and confirm relevant information. Any discrepancies in the information should be brought up to the Seller of your vehicle.
2. Review your return input to see if you missed typed the information. You can do this under Deductions and Credits, Cars and Other Things you Own and then review the input in the topic Energy-Efficient Vehicles.
3. If your information does not match what you inputted, fix the error and resubmit the return.
4. If the Vehicle Seller Report and TurboTax input match, further steps are needed as follows:
   • Confirm with your Seller that they filled with the IRS the Clean Vehicle Seller Report.  The IRS won't issue you a credit without the proper information reported to the IRS.
   • If you didn't get a copy of the Clean Vehicle Seller Report (or something similar) it may mean you purchased an electric vehicle that is not eligible for a clean vehicle tax credit. For example many new vehicles won't qualify as they weren't assembled in North America. For previously-owned clean vehicles, the purchase price must be under $25,000 and the model year can't be less than two model years old.
   • If you have any inputted vehicle information that doesn't qualify for a clean vehicle credit, you can delete the vehicle in the Energy-Efficient Vehicles section and proceed to resubmit your return for e-file.

@john-j-meyer-jr

[john-j-wisconsin1]

I don’t think my seller submitted the form. They insisted I just needed the sales form and nothing more. I have called them about it and they generically say they did everything, but can’t provide specifics related to it. Is there any way to rectify if they did not submit it!

I did check online and the vehicle says it is eligible, sales price was 24,999

[RobertB4444]

If your vehicle is eligible you need to ask the dealer for a copy of the report that they submitted.  Since they say they did it that shouldn't be a problem.  Then you need to compare the numbers that they submitted with what you have entered.  Make sure that they match.  If they don't then you will need to get them to match either by having the dealer amend the form or by adjusting the entries on your tax return.

@john-j-wisconsin1 

[JJA222]

I’m in same boat.  Dealer did not submit VON and they did not give me  form.  So now what do we do?

[john-j-wisconsin1]

I’m still working through it. I’ve talked to tax attorneys, CPAs, the state DOT that oversees car dealers, and no one knows. I am currently thinking a small claims court. Let me know if you find anything

[JJA222]

I might try to mail my return with sales documentation and cover letter, but not sure that will make any difference if dealer dropped the ball and IRS doesn’t give them another chance.  After that, small claims court is my next step.

[B55driver]

I have the same problem. I contacted the dealer and he said he had no idea that used cars could claim a credit. He also said that the IRS system does not let him enter information into the system more than 4 days after the sale and therefore he cannot correct it. He checked with other dealers and said it was a common problem. Somewhere in his checking he was told that the IRS is aware of the problem and that the IRS will send a letter to people whose returns were rejected for that reason within 60 days of the rejection with the instructions for what to do. The instructions will apparently say to include some of the documents of sale that prove eligibility.

I have no idea if any of this is true. It seems the path forward is to file without the credit, wait for the alleged letter to arrive or any more guidance that may surface and then file an amended return. Or paper file with your idea of what supports the credit and see what happens.

For those recommending small claims court, who are you taking to court? The IRS? The dealer? The dealer doesn’t have the money owed, the USG does. I don’t think small claims court handles tax matters.

[john-j-wisconsin1]

my dealer did learn a little. He said the NADA is working with the IRS to try and come up with a solution (you can google NADA clean tax credit). 

I used TurboTax for my return and filed electronically, so it gets rejected and the only way I can file is by removing the credit. That said, I am going to wait another week, then print out all of the forms and hopefully then the IRS will get in contact with me.

i talked to a lawyer, and he said it would be 5-6 k to sue the dealer and 750 to just send a letter asking for something. 

good luck !

[JJA222]

I wonder whether the IRS knows about my rejection when I efile using TurboTax. Will they contact me or do I have to paper file to get instructions?  In meantime, my dealer said they are trying to resolve with IRS. I was assured that I would receive money either from IRS or from them, but we will have to see what happens.

As for small claims court, I would guess it would be the dealer since the IRS didn’t cause my return to be rejected.  In my opinion, it was the dealer’s fault because they neglected to enter the VIN into IRS portal. Simple solution would be for IRS to allow dealers to retroactively enter VIN.

[CatinaT1]

If your return was rejected, it did not go to the IRS. If you can not fix the reason it was rejected, you will need to paper file.

Here's how you can fix it: 

Sign in to your account and select the Fix my return button. Follow any “fix it” instructions to update the information causing the rejection. 

Note: Not all rejections will have explicit guides to fix the information. You’ll need to navigate to the program area to address the cause of the rejection. 

Time-saving Tip: If what you originally entered is correct, you won't be able to e-file. There's probably a data mismatch at the government, a dependent that's already been claimed, or some other situation beyond your control that prevents your return from being e-filed. In this case, your only option would be to print and mail in your return. This article will give you instruction on how to print and mail your return. 

Additional reject instruction here. 

[JJA222]

Hopefully, NADA involvement will help.  I filed for an extension with IRS to give more time.  Really rather not paper file and then have to file an amended return, but will do it if that is what is required.

I thought small claims court is typically less than $200. I’m not sure what defense the dealership would offer since the only reason tax credit was rejected was because they didn’t report sale to IRS.