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USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1236
Experience:  US Taxation specialist.
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I purchased a neighborhood electric vehicle. I reviewed the

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I purchased a neighborhood electric vehicle. I reviewed the qualifying documents prior to ordering it, on 11/13/1009, they stating it must be purchased within the tax year. The vehicle was delivered on 12/16/2009. I went over the qualifying document with the dealer, they informing me to claim the credit on my tax return, which I did. I operated the vehicle on a temp registration and license until receiving the permanent documents in Jan 2010.
The IRS then came back, in 05/2011 stating it did not qualify, as it must be placed in service in 2009, placed in service being when the registration and title were issued by the state. My research brought to light they had amended the IR 2009 reflecting the changes on 11/13/2009, but failed to inform me or the dealer of this change until now.
Do I stand a chance of fighting this.



I am assuming you used Form 8936 to claim the credit. Please advise if you did not use this form.


As long as the vehicle is "certified" there are four requirements that must be met to be eligible for the credit. (see link below for IRS instructions on what constitutes "certified")


In addition to certification, the following requirements must be met to qualify for the credit:
- You placed the vehicle in service during your tax year;
- You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit;

- The original use of the vehicle began with you;

- You acquired the vehicle for use or to lease to others, and not for resale; and

- You use the vehicle primarily in the United States.


If all of the above are true I don't see how you could not qualify. What exactly has the IRS denied? (Certification or "Requirements" as outlined above) I think the titling and registration time delay is irrelevant. There are no such requirements as outlined by the IRS.

USTaxAdvising and 4 other Tax Specialists are ready to help you
Customer: replied 5 years ago.
I did not use Form 8936, as I read the requirements for that form, I could not see as it was needed for this application

What form did you use?

What line did you report the credit on on your Form 1040?

Customer: replied 5 years ago.
We are on different wave lengths, I was simply asking, since the feds changed the rules in the 9th inning so to speak, and assigned that the now credit depends on state licensing policies, and the state in taking
36 days to issue my title put my in service date in another tax year, which disqualified me for this credit. They (IRS) never informed the Dealer who sold me the vehicle of this change, (or so they say), he sold it based on the old rule, purchased in the tax year. based on his manufacturers cert. which was the rule issued by the IRS, as basis for the tax credit, prior to last minute change.
I suspect you have offered all their is to offer, I may challenge the IRS anyway, just to see what they will do.
Thanks, XXXXX XXXXX agree to the fee, when presented.

Okay if there is anything I can help with further please do not hesitate to ask.

Okay if there is anything I can help with further please do not hesitate to ask.

USTaxAdvising and 4 other Tax Specialists are ready to help you

Hello I saw that you left neutral feedback therefore I would like to do a better job in answering your question.


If I understand your question, you are asking if the IRS has changed thier rules regarding the criteria and eligibility for the electric motor vehicle credit? Is that correct?


The IRS has not changed thier criteria as I set out above. There is no "titling" or "licensing" requirement. In fact this is irrelevant. The date you place the vehicle in service is the critical point.


I believe you have substantial authority for your case and are entitled to the credit. (Given the information that you have provided)


If something is not clear please do no hesitate to continue our discussion here. If you have a question that remains unanswered please ask it again and I will do my best to answer it.

Customer: replied 5 years ago.
1. Original IRS Requirement to qualify: Purchased in the 2009 Tax Year
2. IRS change to IR-2009-54 (11/01/09) Placed in Service in Tax Year.
3. IRS change to IR-2009-54 (11/13/09) Placed in Service in Tax Year using State (in service criteria) AZ in service criteria being the date the title was issued, not the temp register and license date.
4. I reviewed this criteria the 1st week of Nov and noticed the first change, placed in service. I then visited the dealer and asked him to define placed in service, they informed me this meant the date I took possession. I ordered the vehicle based on the understanding I qualified for the tax credit.
5. The vehicle was delivered 12/16/09, and I operated on a temp license and registration. The title was not dated until 1/21/2010. That put the titling into the next tax year, meaning the IRS denied the credit.
6. I feel the late changes to IRS 2009-54 was aimed at the large group of people who would not have time to title their vehicle according to the original requirement, purchased in 2009 to qualify.
7. The IRS I feel targeted the late buyers by changing the rules at the last minute, to disqualify them from the credit.
8. The State Dept of Motor Vehicles in AZ informed me that the dealer has an unlimited time to process the licensing and titling paperwork, and the Department then issues the permanent title on a first come first served basis, their processing time dependent on workload

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