Electric drive vehicle credit 8936 decreased/rejected by IRS

[Ready2plugin]

I have not even received a letter from the IRS. I ordered the audit defense from Turbo Tax when I filed and it states that I have to wait until I receive notification from the IRS of an audit and not to talk to them directly...so the waiting game continue.

 

[gascant]

If anyone had said that our refunds would be delayed for 6-12 months, would we have leased instead?? Then consider a buyout at the end?

 

[lonndoggie]

I did get through to the IRS today. My tax return hasn't been examined yet. It's in the queue and could be anywhere from 2-6 weeks before I even know what they are requesting. But, in the interim, I'll gather the information that people here have been posting. They claim to have sent two CP notices but I only received one. The agent with whom I spoke said the refund, if approved, could take anywhere between 6 weeks and 6 months.

I've received nothing yet, but I have talked to the examination group at the IRS twice. The first time was from my tax guy's office (he called the preparer's line, and they put us through). If you get ahold of those guys, they seem to be very patient and will spend a good amount of time, even if they don't have much information.

In both cases, they were able to tell me that our return had been flagged, but is in a state (I think called classification) where it's waiting for a human to examine and see what's up. Tragically, there is no indication that they can see as to WHY it got flagged, but both guys went through everything and they only thing they saw that seemed likely was the EV credit.

Guy Number 2 said that it would typically get through classification in x number of days (no, I don't remember what x was), and that worked out to be...yesterday, Saturday. And that they would either call it good and I'd get my refund, or I'd get the letter that tells me what their beef is.

Here's hoping I get my refund in time for Christmas.

PS--my tax preparer also bought a LEAF and filed for the EV credit. When I was at his office, he hadn't gotten his return back, but he wasn't waiting for a refund, either. I'll have to ask him if he's gotten his yet.

LDog

 

[mwalsh]

Got four copies (I kid you not) of the same letter today, basically saying the IRS had received my response to the denial letter and that someone would be in touch within 4-6 weeks. :?

 

[gascant]

Got four copies (I kid you not) of the same letter today, basically saying the IRS had received my response to the denial letter and that someone would be in touch within 4-6 weeks. :?

hmmmm....so you might see your refund by Halloween. :?:

 

[sparky]

Got four copies (I kid you not) of the same letter today, basically saying the IRS had received my response to the denial letter and that someone would be in touch within 4-6 weeks. :?

Same here (just one copy though). "We haven't resolved this issue because we haven't completed all the research necessary for a complete response"...
45 days puts them right on the "12 weeks" estimate by the Audit Defense folks.
Taxes filed in Feb.
Return screwed up by IRS confusing 8396 with 8936.
Life in the slow lane.

 

[oakwcj]

I bring you a message of hope.

When I last heard from the IRS, on May 29, I was told that I should expect a reply by today, July 22, 2012. Nothing has arrived in the mail, so I decided to check the "Where's My Refund" status page:

"Refund Status Results

Your tax refund is scheduled to be direct deposited on July 25, 2012. If your refund is not credited to your account by July 30, 2012, check with your bank to find out if it has been received. Please wait until July 30, 2012 before you contact us again because we are unable to take any action until then."

Woo-Hoo!!!

BTW, the amount of the refund is about $75 more than I requested. The difference must represent 3% interest from the April 17th filing deadline through the date of the refund.

 

[gascant]

Nissan was unaware of any of this until last night. I spoke with their Government Affairs Director at Plug In 2012 about it. They will get their folks in Washington working on it. I'll post details as I learn more about what they are doing.

 

[Volusiano]

Nissan was unaware of any of this until last night. I spoke with their Government Affairs Director at Plug In 2012 about it. They will get their folks in Washington working on it. I'll post details as I learn more about what they are doing.

Wow, for a company whose critical success in the sales of their EV being very dependent on the success of their customers getting the federal tax credit, their Director of Gov't Affairs has no clue about the tax credit refund issue until now?

Talk about having their heads buried in the sand...

This federal tax credit issue can be as bad as the battery capacity issue to their sales. Nobody is going to want to buy anymore if they're not sure they'll get the $7500 back next year.

 

[JimSouCal]

This federal tax credit issue can be as bad as the battery capacity issue to their sales. Nobody is going to want to buy anymore if they're not sure they'll get the $7500 back next year.

I am going to raise an unspoken point, and make what may be an unpopular statement--but stand by it.

While I feel the whole program could have been administered better to avoid fraud and maintain a climate of honesty, I also am glad the IRS is trying to avoid mailing out checks to fraudsters who do not qualify...

Better run and implemented: yes. Doling out money for filling out a form: no.

Again, I feel sorry for those who have time constraints on the money, and these delays are surely wrong, but really, do we want the money just handed out with no verification..?

Yeah, got my check, but I would still happily be waiting as they are paying more interest than one can get on savings...

 

[mwalsh]

While I feel the whole program could have been administered better to avoid fraud and maintain a climate of honesty, I also am glad the IRS is trying to avoid mailing out checks to fraudsters who do not qualify...

Better run and implemented: yes. Doling out money for filling out a form: no.

I've said it before (maybe even in this thread), but I think their limited resources would be better used finding wholesale fraud. Like the folks filing for refunds on completely fraudulent returns, using bogus information like made-up or stolen SSNs. This kind of abuse of the system is supposedly rampant in the prison system, from what I've read. Surely that couldn't be any harder to ferret out than what we have going here?

 

[davewill]

I've said it before (maybe even in this thread), but I think their limited resources would be better used finding wholesale fraud. Like the folks filing for refunds on completely fraudulent returns, using bogus information like made-up or stolen SSNs. This kind of abuse of the system is supposedly rampant in the prison system, from what I've read. Surely that couldn't be any harder to ferret out than what we have going here?

Actually, these are pretty low hanging fruit for them. Flag it, send a letter requiring proof. If the proof is forthcoming, send the check, otherwise decline (and penalize). Not that they shouldn't be going after other fraudsters, too.

 

[JimSouCal]

While I feel the whole program could have been administered better to avoid fraud and maintain a climate of honesty, I also am glad the IRS is trying to avoid mailing out checks to fraudsters who do not qualify...

Better run and implemented: yes. Doling out money for filling out a form: no.

I've said it before (maybe even in this thread), but I think their limited resources would be better used finding wholesale fraud. Like the folks filing for refunds on completely fraudulent returns, using bogus information like made-up or stolen SSNs. This kind of abuse of the system is supposedly rampant in the prison system, from what I've read. Surely that couldn't be any harder to ferret out than what we have going here?

I think we both can be "right". Not being able to quickly certify a rebate claim for such an item as a car with cross checks is pretty lame when it results in paying out interest. In a big way, we are all in this together... I wonder what a talented manager and administrator might go through who works at the IRS as a part of being a cog in the machine? There must have been a way for Nissan to provide serialized certificates of sale that mapped to a particular VIN to be provided for proof of purchase that could have been a prerequisite?

I don't think this was thought through to the end very well, and that is supported by the evidence of many entitled to rebates sitting and waiting... Anyway, talent and efficiency in government would be welcomed by our entire voting population. How to get that, well, humm?

Having it to do over, I'd leased and bought it out if I understand how that worked. Thought I was avoiding hassle by buying.

 

[JimSouCal]

I've said it before (maybe even in this thread), but I think their limited resources would be better used finding wholesale fraud. Like the folks filing for refunds on completely fraudulent returns, using bogus information like made-up or stolen SSNs. This kind of abuse of the system is supposedly rampant in the prison system, from what I've read. Surely that couldn't be any harder to ferret out than what we have going here?

Actually, these are pretty low hanging fruit for them. Flag it, send a letter requiring proof. If the proof is forthcoming, send the check, otherwise decline (and penalize). Not that they shouldn't be going after other fraudsters, too.

I never had any communication at all. Just a check bearing interest several months after filing...

 

[DANandNAN]

Nissan was unaware of any of this until last night. I spoke with their Government Affairs Director at Plug In 2012 about it. They will get their folks in Washington working on it. I'll post details as I learn more about what they are doing.

Wow, for a company whose critical success in the sales of their EV being very dependent on the success of their customers getting the federal tax credit, their Director of Gov't Affairs has no clue about the tax credit refund issue until now?

Talk about having their heads buried in the sand...

This federal tax credit issue can be as bad as the battery capacity issue to their sales. Nobody is going to want to buy anymore if they're not sure they'll get the $7500 back next year.

At least Nissan has someone representing their customers in DC. I don't know if GM does (but I don't recall any complaint threads either - knock wood ). I think it's kind of hard to blame the Dir. of Government Affairs if no one complained to him/her.

 

[Volusiano]

Nissan was unaware of any of this until last night. I spoke with their Government Affairs Director at Plug In 2012 about it. They will get their folks in Washington working on it. I'll post details as I learn more about what they are doing.

Wow, for a company whose critical success in the sales of their EV being very dependent on the success of their customers getting the federal tax credit, their Director of Gov't Affairs has no clue about the tax credit refund issue until now?

Talk about having their heads buried in the sand...

This federal tax credit issue can be as bad as the battery capacity issue to their sales. Nobody is going to want to buy anymore if they're not sure they'll get the $7500 back next year.

At least Nissan has someone representing their customers in DC. I don't know if GM does (but I don't recall any complaint threads either - knock wood ). I think it's kind of hard to blame the Dir. of Government Affairs if no one complained to him/her.

If GM got that HUGE gov't bail out in 2008/2009, I'm sure they must have reps in DC, too. These reps in DC are for their own benefits, not ours anyway, for loan subsidies and stuff like that. So it's not like we need to give them kudos for having DC reps on our behalf or anything like that.

I can understand why no customer would think to go and complain to Nissan about the tax credit because it's the IRS doing and not theirs. But I would think they'd be smart enough to see the obvious connection between the federal tax credit and their sales to give it some attention for their own benefit, not ours.

Now nobody wants to buy the LEAF anymore, except to lease, because getting back the $7500 tax credit is not a foregone conclusion like before. The battery issue is another big one for choosing to lease. I wonder what Nissan is going to do if the majority of their sales are going to come in through a lease form in the next few years. Is having more leases better for them, or having more purchases better for them? I don't know enough about the car business to tell which way is better.

 

[mwalsh]

I wonder what Nissan is going to do if the majority of their sales are going to come in through a lease form in the next few years. Is having more leases better for them, or having more purchases better for them?

I'm pretty sure that's what they expected all along. I remember how incredulous Nissan management were when I broached the subject of somebody actually purchasing with those in attendance at the press launch event in fall of 2010. Looking back, it was quite clear that they didn't expect anyone to purchase.

 

[Volusiano]

I wonder what Nissan is going to do if the majority of their sales are going to come in through a lease form in the next few years. Is having more leases better for them, or having more purchases better for them?

I'm pretty sure that's what they expected all along. I remember how incredulous Nissan management were when I broached the subject of somebody actually purchasing with those in attendance at the press launch event in fall of 2010. Looking back, it was quite clear that they didn't expect anyone to purchase.

If they had expected all along to have a high lease return volume, maybe they're hedging their bet that they'll be able to retrofit all these lease returns with cheaper/better/longer-range batteries that will help make them whole again and carry great resale values through the aftermarket as pre-owned LEAFs.

So maybe they do have more cards up their sleeves after all. They just need to buy more time.

 

[gascant]

Now nobody wants to buy the LEAF anymore, except to lease, because getting back the $7500 tax credit is not a foregone conclusion like before. The battery issue is another big one for choosing to lease. I wonder what Nissan is going to do if the majority of their sales are going to come in through a lease form in the next few years. Is having more leases better for them, or having more purchases better for them? I don't know enough about the car business to tell which way is better.

How would anyone going in to buy a LEAF know that refunds are being delayed??

I can't fault Nissan on being unaware--all of their employees that drive LEAFs have them on lease. They can't possibly read every thread on this forum, either. As early adopters, we have a duty to inform them when there are glitches.

 

[surfingslovak]

Now nobody wants to buy the LEAF anymore, except to lease, because getting back the $7500 tax credit is not a foregone conclusion like before. The battery issue is another big one for choosing to lease. I wonder what Nissan is going to do if the majority of their sales are going to come in through a lease form in the next few years. Is having more leases better for them, or having more purchases better for them? I don't know enough about the car business to tell which way is better.

How would anyone going in to buy a LEAF know that refunds are being delayed?? I can't fault Nissan on being unaware--all of their employees that drive LEAFs have them on lease. They can't possibly read every thread on this forum, either. As early adopters, we have a duty to inform them when there are glitches.

I would at least call customer service and file a ticket with them. BMW's ActiveE program works the same way.

For what it's worth, I had a Volt on order last year, and GM has an interesting concept called Vot Advisors. They reach out to individual owners and try to make sure that everything is going smoothly. Since I didn't go through with my purchase, I can't really comment on how effective the program is and how good their post-sales support really is. Still, it's an interesting idea, and I think it meshes with a new product and the early adopter crowd. It makes you feel a bit like a VIP.

That said, I haven't filed my taxes yet, I usually do that in October. Hopefully, the IRS will have untied the Gordian Knot by then. I will be paying close attention to this thread.