Electric drive vehicle credit 8936 decreased/rejected by IRS

[zarwin]

In case you did not see it earlier in this thread, here is a doc that has expanded info and links into the tax code for this tax credit issue.

http://goo.gl/l3w8W" onclick="window.open(this.href);return false;

[sparky]

I was going to start a new thread, because what I have to report is straight out of the Twilight Zone. My tax return has been in limbo since late January. Today I got an "Examination Report" with pages of attached garbage from the IRS. The upshot is that my claim for a "Mortgage Interest Credit for $7,500" under Form 8396 was disallowed and penalties were imposed, because I failed to substantiate the claim! That's right, some bozo transposed the three and the nine and turned my claim for an EV credit on Form 8936 into a claim for a mortgage interest credit on Form 8396. My return was completely accurate. .....

sorry to hear about that.
it seems a one-off situation ....

Not a one-off, I just got a letter from IRS saying exactly the same thing (invalid mortgage Interest deduction). In my case they took a portion of the refund.
I filed in Feb. and received a letter from the IRS in early April saying they believed my return had an error and would contact me in 30 days. I paid for the TurboTax audit support and contacted them today. They had me upload all the supporting docs, assigned me a rep and said they'd get back to me by phone in 3-5 days with their assessment. We'll see.

BTW, I filed electronically. At first I thought it was a TurboTax formatting error in the machine readable form that gets transmitted. But, if that were the case it seems like there would be several more of these 8396<->8936 cases.

[tzzhc4]

After hearing gmuzhik's experience and reading the great documents posted in this thread I decided it was time to speak to the IRS. After ~3 hours on the phone (mostly on hold) I finished up with the "Tax Law" department and was told I had a case and that TMT should not be applied to decrease the credit as long as the vehicle is 100% personal use. The IRS has 30 days to hash it out so I will keep everyone updated. Thanks for the help!

[Ready2plugin]

We filed on Febuary 12th, have received exactly zero correspondence. the web site says "Your tax return has been received and is being processed." and has said that for months. We have made repeated phone calls, the first time they said that there was a discrepancy and that we should have received a notice by mail a month earlier. They told us they could not reissue the letter till 30 days from the original issue, so we scoured the house and made sure we had not received the letter, then we waited till after the 30 days and had our accountant make the inquiry (there is a special line for CPA's that sometimes offers better info). The accountant spent a lot of time digging into this with the help line and was finally referred to the advocate line, they finally admitted that they had not sent any letter out and, as mentioned earlier, we are in in "limbo land" and that they have 120 days from late March to reply or give us a refund... that's late JULY!

I contacted my Senator's office, who offered to file a Congressional Inquary. Yesterday we sent off all the waivers and forms to the Senators office for them to act on our behalf. Our CPA also suggested sending a formal complaint to the IRS, as in her 25 years in business she has never seen anything like this, oh and she also mentioned that the advocacy line told here that there was some code on the file related to the electric vehicle credit.

Not happy!

Did you ever get your refund? I'm also still stuck in "Your tax return has been received and is being processed" land. Was counting on my refund for some home repairs this spring, but at this rate maybe by fall! Too bad we can't charge the IRS interest!

[thankyouOB]

did anyone with this problem file on paper?

that is to say, are all those in limbo or denied electronic filers?

[oakwcj]

did anyone with this problem file on paper?

that is to say, are all those in limbo or denied electronic filers?

I can't answer your question, but my guess is that paper returns are scanned and digitized. I don't believe, based on experience with other government agencies, that the IRS uses the paper returns for processing.

[gascant]

I'm in the same boat as Ready2plugin. Been almost 2 months since my e-filed tax return was accepted, and it's still being processed. Wonder if we've made it to the FAQ's though.....

[garygid]

I paper-filed, mailing 16 April 2012.
I just checked "Where's My Refund" at: http://www.irs.gov" onclick="window.open(this.href);return false;
and found that I should expect the refund on June 12th.
We shall see what transpires.

[mwalsh]

Still at "Your tax return has been received and is being processed" for me. Filed electronically on Feb. 11th via TurboTax. This is bloody ridiculous.

[Ready2plugin]

I paper-filed, mailing 16 April 2012.
I just checked "Where's My Refund" at: http://www.irs.gov" onclick="window.open(this.href);return false;
and found that I should expect the refund on June 12th.
We shall see what transpires.

Good luck. Mine stated I should have my refund on May 15th, which came and went, so it's now back to received and being processed....