IRS Problem reporting site

Technic · 09-13-2022, 01:01 PM

Quote:

Originally Posted by mbchris

I am confused. Isn't there a way to meet both the law and IRS requirements? By having an unlimited worded purchase order?

Only your dealer can answer that question as it is their purchase order document after all. They have their lawyers, and can redact a purchase order in a way that may satisfy the "written binding contract" requirement based on their current interpretation of the law and IRS guidelines at this time.

pharding · 09-14-2022, 04:28 AM

Quote:

Originally Posted by OUGrad05

Heard from the IRS today. I was told this would require a legislative change for the i4 to qualify for the credit moving forward.

Same here. I asked her to document what I said today as I restated the lunacy of the situation.

Technic · 09-14-2022, 05:43 AM

Quote:

Originally Posted by OUGrad05

Heard from the IRS today. I was told this would require a legislative change for the i4 to qualify for the credit moving forward.

When this particular i4 was ordered?

Technic · 09-15-2022, 02:24 PM

Quote:

Originally Posted by OUGrad05

Heard from the IRS today. I was told this would require a legislative change for the i4 to qualify for the credit moving forward.

My understanding of this IRS message (received by voicemail) is that "most" of the "wording" of the "written binding contract" definition has to do with legislative intent, and only legislative action can simplify this "wording", not the IRS. The actual tax credit issue with the transition rule and orders placed before August 15 have been escalated to the IRS legal team.

There was nothing in the message related specifically to the i4, this was a generic EV tax credit question response.

Acturater · 10-21-2022, 04:05 PM

Could I ask the latest on this? I put a $1,000 refundable deposit down one year ago in Oct 2021. Have others here been planning to file for the credit?

TurtleBoy · 10-21-2022, 04:36 PM

Quote:

Originally Posted by Acturater

Could I ask the latest on this? I put a $1,000 refundable deposit down one year ago in Oct 2021. Have others here been planning to file for the credit?

Nothing has changed. It is up to you whether you want to take the chance but you do not meet the requirements of the Transition rule.

mbchris · 10-21-2022, 06:34 PM

The penalty does seem significant. I'm not sure it's worth the gamble. You could potentially ask your accountant if you can file it, in which case would that satisfy a reasonable attempt?

https://www.irs.gov/payments/accuracy-related-penalty

Negligence or Disregard of the Rules or Regulations Penalty
Negligence is when you don’t make a reasonable attempt to follow the tax laws when you prepare your tax return. Disregard means you carelessly, recklessly or intentionally ignored the tax rules or regulations.

Substantial Understatement of Income Tax Penalty
For individuals, a substantial understatement of tax applies if you understate your tax liability by 10% of the tax required to be shown on your tax return or $5,000, whichever is greater.

bavarianride · 10-30-2022, 11:56 AM

Quote:

Originally Posted by Acturater

Could I ask the latest on this? I put a $1,000 refundable deposit down one year ago in Oct 2021. Have others here been planning to file for the credit?

In CA, the refundable deposit already disqualifies the order is binding, my guess is that FL's statue would be similar(u can check with local CPA/tax attorney to confirm).

pharding · 10-30-2022, 12:08 PM

Quote:

Originally Posted by Acturater

Could I ask the latest on this? I put a $1,000 refundable deposit down one year ago in Oct 2021. Have others here been planning to file for the credit?

Yes. My accountant said that the way this has been handled is not clear. And arguably you did the best you could. He doesn't see a penalty if this comes up.

Everyone would be well served to write your senators and congressional representative and complain.

WER2XU · 10-31-2022, 10:18 AM

I don't see how if you claim, submit your evidence, and they decide you do not get the rebate they will penalize you.

TurtleBoy · 10-31-2022, 10:22 AM

Quote:

Originally Posted by WER2XU

I don't see how if you claim, submit your evidence, and they decide you do not get the rebate they will penalize you.

If they decide you did it fraudulently then they definitely will penalize you. So few people should be able to qualify under the Transition rule that they just may make it an audit trigger so it is looked at closer. Then again, they may not do anything and just process every return without scrutiny.

mbchris · 10-31-2022, 11:34 AM

Quote:

Originally Posted by TurtleBoy

If they decide you did it fraudulently then they definitely will penalize you.

I would defer to an accountant to see the best approach. Definitely want to avoid penalties since they are not light.

0Jake0 · 05-26-2025, 09:38 PM

I got blindsided by a similar IRS policy shift a while back and ended up with a penalty. I managed to get it wiped by filing under the “reasonable cause” abatement.

If anyone here ends up getting dinged because of this nonsense, check this out: https://www.jdsupra.com/legalnews/5-...egies-3907142/

10-21-2022, 04:05 PM	#93
Acturater First Lieutenant 192 Rep 361 Posts Drives: 2016 F80 M3 Join Date: Jan 2015 Location: FL iTrader: (0)	Could I ask the latest on this? I put a $1,000 refundable deposit down one year ago in Oct 2021. Have others here been planning to file for the credit?
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10-21-2022, 06:34 PM	#95
mbchris First Lieutenant 378 Rep 328 Posts Drives: Volvo S90 Join Date: Apr 2018 Location: Dallas TX iTrader: (0)	The penalty does seem significant. I'm not sure it's worth the gamble. You could potentially ask your accountant if you can file it, in which case would that satisfy a reasonable attempt? https://www.irs.gov/payments/accuracy-related-penalty Negligence or Disregard of the Rules or Regulations Penalty Negligence is when you don’t make a reasonable attempt to follow the tax laws when you prepare your tax return. Disregard means you carelessly, recklessly or intentionally ignored the tax rules or regulations. Substantial Understatement of Income Tax Penalty For individuals, a substantial understatement of tax applies if you understate your tax liability by 10% of the tax required to be shown on your tax return or $5,000, whichever is greater.
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10-31-2022, 10:18 AM	#98
WER2XU Private First Class 117 Rep 118 Posts Drives: Cars & Bikes Join Date: May 2022 Location: Boston iTrader: (0)	I don't see how if you claim, submit your evidence, and they decide you do not get the rebate they will penalize you.
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05-26-2025, 09:38 PM	#101
0Jake0 New Member 12 Rep 6 Posts Drives: Mercedez Benz Join Date: Jul 2022 Location: Atlanta iTrader: (0)	I got blindsided by a similar IRS policy shift a while back and ended up with a penalty. I managed to get it wiped by filing under the “reasonable cause” abatement. If anyone here ends up getting dinged because of this nonsense, check this out: https://www.jdsupra.com/legalnews/5-...egies-3907142/ Last edited by 0Jake0; 06-04-2025 at 12:50 PM..
	Appreciate 1 sourphish127.00 Quote