Electric drive vehicle credit 8936 decreased/rejected by IRS

[Cinnabar]

I wonder what the administration costs that could have been lessened had the implementation of the program been accomplished with basic verification controls, checks, and balances--instead of several IRS agents poring over the returns? It seems like the taxpayer might have gotten better return for their support in general....

Yes, it seems crazy (or maybe typical IRS?) to not have simple checks in place to verify the information on the only required form needed to claim the credit.

 

[essaunders]

What is the advice for all of us 2012 purchasers?
Did the turbotax "audit defense" help?
Is one form of filing better (or worse?)
Is there a specific IRS contact that actually helps?

 

[Cinnabar]

What is the advice for all of us 2012 purchasers?
Did the turbotax "audit defense" help?
Is one form of filing better (or worse?)
Is there a specific IRS contact that actually helps?

Hopefully the IRS will have their act better together for the next tax year. It seemed like they audited a batch from a small window of time when most of us filed..

I didn't have the turbotax audit defense, so I don't know if they helped or not. It just seemed that the IRS worked at their own timetable, and if I didn't stress about that, it went as expected. I just waited for the audit letter, faxed back some paper work, and waited (or should I say still waiting - due tomorrow!) for the refund plus interest. It just took a heck of a long time.

The only advice would be to check on your refund status online shortly after filing, and if it goes from a specific date to "being received and in process", get ready for a long wait.

 

[planet4ever]

My advice would be to reduce (or perhaps zero out) your withholding for the remainder of this year so you don't get such a huge check back from the IRS. I think large refunds may trigger audits.

Ray

 

[sparky]

What is the advice for all of us 2012 purchasers?
Did the turbotax "audit defense" help?
.......

I don't believe that the TurboTax Audit Defense made the IRS response any faster. It just meant that I had to do less work and the person they assigned to my case asked for all the right papers up front (sales contract, IRS letters, etc). The time I didn't spend calling or contacting and fetching papers for the IRS was worth far more than the service fee to me. But I don't think it was any faster.

 

[JimSouCal]

I would just be prepared for a long wait for your money (for which you will be paid interest).

Keep in mind one must have the federal tax liability--it is not a credit per se, but an offset of liability.

Some have simply leased and bought out their lease right away. If you've already purchased, the lease is not an option, but is one for many (I'd have done it that way and been legally aggressive on my depreciation, etc.)

I don't know the financial mechanics of the leasing purchase maneuver, but it would allow one to be aggressive with their tax avoidance and also get the close to the full FED incentive while also avoiding state taxation.

 

[Cinnabar]

Final Update on this:

One of those asked to provide Manufacturer's Certification to the IRS:

e-filed with Turbotax: Feb 11
Return accepted by IRS: Feb 12
Notified of audit via mail: June 25
Faxed Response: July 1
Response accepted by IRS: July 2
Confirmed fax associated with my account: July 11
Letter received from IRS saying they are reviewing my response: August 1
Letter says I should receive a reply from IRS by September 15
Checked Refund Status on Sept 15: Your tax refund is scheduled to be direct deposited on September 19, 2012
Full refund plus $167+ in interest direct deposited on September 19.

For those who may face this next year, there are two good pieces of advice. If you need the cash, adjust your withholding so you have the money, not the IRS. If you don't need the cash, 3% interest the IRS pays is not too bad these days.

 

[planet4ever]

For those who may face this next year, there are two good pieces of advice. If you need the cash, adjust your withholding so you have the money, not the IRS. If you don't need the cash, 3% interest the IRS pays is not too bad these days.

Yes, 3% is a good rate right now, but the IRS pays interest only after April 15. You are letting them use your money free of interest from each payday in a given year until April of the following year, an average of about a 9 month interest-free loan you are giving them. My goal is always to cut my deductions to 95% of what I expect to pay. If you drop below 90% you (usually) have to pay penalties. If you go over 100% you lose interest.

Ray

 

[tiltedworld]

SUCCESS!!!!

Refund deposited yesterday + 106.44 in interest. :mrgreen: Only 140 days after receipt of the CP18 letter. I shudder to think of how long I would have been waiting if I left the IRS to its own devices. The case file hadn't been friggen opened when I was first "allowed" to speak to the examiners.

I'd really suggest anyone still dealing with this to hound the examiners office and the taxpayer advocate's offices until you get someone who cares and will push it through. I was told that the Odgen, UT office was handling ALL cases related to EV's, but I don't know if that is a true statement. If anyone wants the phone number to the advocate I dealt with who is based in Ogden, UT - PM me and I will forward it along.

 

[gascant]

OMG!!! (You'd think I was a teenage girl, but I'm as giddy as one today)
Having been out of the forum for a few days, I went to the IRS web site after reading the recent success stories, above.
My refund was deposited to my bank account yesterday, the 19th. No warning, just there, with $124 in interest.

Have been so busy with National Plug In Day planning, that I totally had no time for dealing with the IRS. Was planning to do it next week, but don't have to now.

However, there is progress to report, even if it's intangible. I had a meeting with Jay Friedland, Legislative Director of Plug In America, a few weeks ago. He was familiar with the issue, but was going to Washington DC for some lobbying and said he would work this one. Also, I got an email last week from Nissan's Government Affairs Director, who told me their group in DC is working this now, too. Someone from that group will be following up within a week.

It's great to see the refunds starting to come--please keep posting your stories here so we can keep Nissan and Plug In America up to date. What do people think of the idea of starting a spreadsheet/wiki with significant dates from filing to refund?
Filed: April 2nd CP-18: April......? Phone call.....? Refund.....Sept. 19th.

 

[GoingGreener]

Yaay!!
And we got good news too!
Taxpayer Advocate called for the 1st time yesterday and said our exam was closed. Will call me if any updates.
Called me back today as we are scheduled for a direct deposit on September 26th!
Checked our status online out of curiousity... received, processing... LOL, I guess she can see ahead of taxpayers!
And, interest received is TAXABLE... our saga continues to 2013.
Sure, some sort of spreadsheet might be easier to reference than scrolling thru pages and pages.
Hang tight for those of you waiting. Advocate did say on first call that it was like a "1st In, 1st Out" kinda processing.

 

[Ready2plugin]

Still waiting for any news from the IRS. Audit Defense will not do anything without an audit notice from the IRS and I don't qualify for an advocate. Tried calling the IRS directly today and never got through to an actual person. Hopefully I'll get my refund before the end of the year....

 

[JimSouCal]

Still waiting for any news from the IRS. Audit Defense will not do anything without an audit notice from the IRS and I don't qualify for an advocate. Tried calling the IRS directly today and never got through to an actual person. Hopefully I'll get my refund before the end of the year....

It seems that identity theft and the subsequent filing of bogus tax returns with large refunds is the real driver here. A relative had this happen the the IRS actually deposited over $12,000 in fraudulent checking account, but it was picked up before it was drained off. The funds have yet to be reclaimed by the IRS. Pretty lame on several accounts...

What is sums up as we need talent in government just as much as we need talent in the private sector... Or so it seems....

 

[astrorob]

well, now i get to join this thread, but my story might be a little different.

right after i filed, i got a notice saying the full amount of my refund had been held back, but when i investigated my bank account, i was only short a very small amount corresponding to the foreign tax credit i had. that was months and months ago. now i cant even remember if that was resolved - the amount was so small i just didn't care.

on saturday i received a huge package from the IRS - form 4549, "income tax examination changes." unfortunately the explanation was at the end and i missed it, which caused some stress. anyway the math on the form says that i have underpaid my taxes by $7500 and i'm being levied a $1500 fine for underpayment. i called them this morning and the person i talked to alerted me to the explanation form at the very end of the stack... that form says they want proof that i own the car - sales contract and registration. i have no idea if turning that in that will solve the problem, but i hope so.

i've heard that if you ask nicely and explain that there was no intent to defraud, that they will waive the fines. i don't expect to need to do this, because it seems to me that there's no reason why the credit should be rejected based on other peoples' resolution of the problem in this thread.

 

[theaveng]

This is why I pay so little in withholding tax. I don't have to sit-around and wait for the IRS to refund money. It's already in my bank.

The government will hand-out 400 billion to random companies, 1/4 of which go bankrupt and never repay the money, but heaven forbid one of the citizens (from which all legitimate power derives) ask for a $7500 credit under the U.S. EV program. I love my country but hate my government.

 

[astrorob]

This is why I pay so little in withholding tax. I don't have to sit-around and wait for the IRS to refund money. It's already in my bank.

The government will hand-out 400 billion to random companies, 1/4 of which go bankrupt and never repay the money, but heaven forbid one of the citizens (from which all legitimate power derives) ask for a $7500 credit under the U.S. EV program. I love my country but hate my government.

do you really have to spam every thread with this nonsense?

 

[thankyouOB]

This is why I pay so little in withholding tax. I don't have to sit-around and wait for the IRS to refund money. It's already in my bank.

The government will hand-out 400 billion to random companies, 1/4 of which go bankrupt and never repay the money, but heaven forbid one of the citizens (from which all legitimate power derives) ask for a $7500 credit under the U.S. EV program. I love my country but hate my government.

do you really have to spam every thread with this nonsense?

haters gotta hate (even if they leave in paradise, apparently.)

 

[gascant]

well, now i get to join this thread, but my story might be a little different.

right after i filed, i got a notice saying the full amount of my refund had been held back, but when i investigated my bank account, i was only short a very small amount corresponding to the foreign tax credit i had. that was months and months ago. now i cant even remember if that was resolved - the amount was so small i just didn't care.

on saturday i received a huge package from the IRS - form 4549, "income tax examination changes." unfortunately the explanation was at the end and i missed it, which caused some stress. anyway the math on the form says that i have underpaid my taxes by $7500 and i'm being levied a $1500 fine for underpayment. i called them this morning and the person i talked to alerted me to the explanation form at the very end of the stack... that form says they want proof that i own the car - sales contract and registration. i have no idea if turning that in that will solve the problem, but i hope so.

i've heard that if you ask nicely and explain that there was no intent to defraud, that they will waive the fines. i don't expect to need to do this, because it seems to me that there's no reason why the credit should be rejected based on other peoples' resolution of the problem in this thread.

Oh, man!!!!
Do they have a "Mr. Frustrated" emoticon on this site?
We have to make this one known. What a mess.
I'll relay to my contacts.

 

[astrorob]

Oh, man!!!!
Do they have a "Mr. Frustrated" emoticon on this site?
We have to make this one known. What a mess.
I'll relay to my contacts.

hi gascant - yeah... i registered for the plug-in event at chrissy field and then work and family conspired to prevent me from going. i wanted to discuss it with someone from nissan to see if they had any advice.

i'm sure it will be okay, the examiner told me this morning alls i have to do is send in my proof.

thanks for all your work organizing the plug-in day and bayleafs stuff. sorry i missed the big event...

 

[Cinnabar]

i've heard that if you ask nicely and explain that there was no intent to defraud, that they will waive the fines. i don't expect to need to do this, because it seems to me that there's no reason why the credit should be rejected based on other peoples' resolution of the problem in this thread.

It is exactly what I went through. I faxed a copy of their report (required), a copy of my title, my purchase agreement, a copy of the window sticker and this page http://www.irs.gov/Businesses/30D.-...-Drive-Motor-Vehicles-–--Nissan-North-America that I labeled manufacturers certification. I also printed some small labels that had my name and social security number and put them on each page. About a week later I called to make sure the fax had been associated with my account which it had. Then I waited for the full refund plus interest.