Used EV Tax Credit

[Pierogie27]

I purchased a qualified used Chevy Volt from a used car dealership earlier this month. I meet all of the tax credit requirements, as does the car. However,  the dealership was unaware of the new used tax credit. They did not give me the paperwork that the IRS says is required, and as far as I know have not (and might not) submit required paperwork to the IRS. Will I still be able to claim my credit if I never get the paperwork from them, and if they do not submit paperwork to the IRS?

[IanM123 · Accepted solution]

@Pierogie27   great question! Unfortunately getting proper documentation can sometimes be quite a hassle - however, the wording of the IRS Fact Sheet (https://www.irs.gov/pub/taxpros/fs-2023-08.pdf) suggests that this is a requirement of the dealer and not necessarily something that would prevent you from taking the credit necessarily. Much of the information the dealer should be providing to you and the IRS will be available on other purchasing documents.

Per IRS Fact Sheet linked above, they are supposed to provide the following:
• Name and taxpayer identification number of the dealer
• Name and taxpayer identification number of the taxpayer
• Vehicle identification number of the vehicle
• Battery capacity of the vehicle
• The date of the sale and the sales price of the vehicle
• Maximum credit allowable for the vehicle being sold
• For sales after December 31, 2023, the amount of any transfer credit applied to purchase
•A declaration under penalties of perjury from the dealer

As with every tax change there will be new forms and new guidance emerging as we get closer to the filing deadline for 2023 returns. I would do your best to make a documented and specific request from the dealer for this information and retain whatever documents on the purchase you do have access to. It is possible that there will be an IRS procedure to make a demand through the IRS for the documents (like you can do with a W-2). If the vehicle is eligible in all other capacity and for some reason the IRS denies the credit based on the lack of this information being rightfully submitted by the dealer - there are other avenues to explore to contest or object at that time. Long story short, keep records of everything (especially something like a demand in writing for the dealer to provide you this required information) and you should be just fine! Tax professionals and tax payer advocates can be of use around the time of filling your 2023 return if the dealership has still refused to provide documentation at the time you file your 2023 return. Congratulations  on the EV - enjoy it!