IRS Guidance On Binding Agreement

[Gamma rays]

Do people think IRS will flag down all tax returns claiming EV tax credits and require submission of proof of binding purchase agreement as part of the audit process? This is really what it boils down to, in my ordinary layman's opinion.

GR

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[OEVA]

Do people think IRS will flag down all tax returns claiming EV tax credits and require submission of proof of binding purchase agreement as part of the audit process? This is really what it boils down to, in my ordinary layman's opinion.

GR

The GAO estimates they will allow 11K EV Tax Credits in 2023
The IRS gets to hire 87,000 new agents

Those facts taken together paint a bleak picture. Deliveries this year up until the point the guidance on battery minerals and components are issued are guaranteed - after that is is still a big question mark. Doubtful that the token nonrefundable amount Rivian crafted is going to fly without changes to the rules/guidance.

 

[Autolycus]

The GAO estimates they will allow 11K EV Tax Credits in 2023
The IRS gets to hire 87,000 new agents

Those facts taken together paint a bleak picture. Deliveries this year up until the point the guidance on battery minerals and components are issued are guaranteed - after that is is still a big question mark. Doubtful that the token nonrefundable amount Rivian crafted is going to fly without changes to the rules/guidance.

Picking nits here, but… CBO, not GAO.

I also mildly suspect Reuters’ report about the CBO cost analysis was misinterpreted or was itself a misinterpretation that’s spread everywhere. Normally the CBO estimates costs of legislation relative to baseline rather than in absolute terms. In this case that would mean they could have actually been estimating $85 million in costs compares to the now-old 30D credit based only on battery capacity and manufacturer.

edit: just read the CBO’s score, and I’m now more confident that it’s a misunderstanding and that CBO is expecting an additional cost of $85 million relative to baseline rather than a total of $85 million in 2023.

 

[Friscorays]

Rivian still seems confident in the process they implemented.

 

[Prime]

Rivian still seems confident in the process they implemented.

Hmm... i did fill out, saved the docs, but never received a confirmation email.

 

[astonius]

Hmm... i did fill out, saved the docs, but never received a confirmation email.

Same. I chatted with CS about it. They said the only ones who should have received a confirmation email at this time were those who had to resubmit their $1,000 deposit. They mentioned the FAQ page is incorrect and will request it be updated for clarity. As long as you saw the confirmation page and downloaded the "signed by Rivian" agreement you should be in the clear.

 

[Prime]

Same. I chatted with CS about it. They said the only ones who should have received a confirmation email at this time were those who had to resubmit their $1,000 deposit. They mentioned the FAQ page is incorrect and will request it be updated for clarity. As long as you saw the confirmation page and downloaded the "signed by Rivian" agreement you should be in the clear.

Oh good to know, thanks for the share.

 

[Taycanfrank]

Rivian is not a licensed dealer in NJ (if I recall correctly).

I think we are mixing up too many thoughts on this thread.

IRS posted "guidance" - it brings up State law within said guidance. Plus we have someone who has a dear friend who is a big time CPA on this thread saying it comes down to state law...

I'm not giving this much more thought. I'm 99% certain I'll get the credit.

Hey, don't call my brother my friend.

For reference, he looked even more into it today, including what Rivian sent (he is also a preorder holder) and he remains confident it's sufficient for most to claim the credit. He would/will claim it and advise clients to as well.

I do enjoy when he's wrong, but unfortunately (fortunately in this case) it doesn't happen all that often. I feel confident we're fine.

 

[JerseyGreens]

Hey, don't call my brother my friend.

For reference, he looked even more into it today, including what Rivian sent (he is also a preorder holder) and he remains confident it's sufficient for most to claim the credit. He would/will claim it and advise clients to as well.

I do enjoy when he's wrong, but unfortunately (fortunately in this case) it doesn't happen all that often. I feel confident we're fine.

? Sorry about that. I was reading through this thread too quickly and thought he was your friend instead of brother. I hope you're being tongue and cheek about him not being your friend! I only have sisters so I can't fully comprehend a brotherly relationship.

I'm a risk management underwriter which means I have to play a lawyer, accountant, and finance layperson everyday in my profession as I assume risk and draft coverage contracts.

I'm fully confident that we will get the credit without any issues as well.

 

[LevelHeaded]

Hey, don't call my brother my friend.

For reference, he looked even more into it today, including what Rivian sent (he is also a preorder holder) and he remains confident it's sufficient for most to claim the credit. He would/will claim it and advise clients to as well.

I do enjoy when he's wrong, but unfortunately (fortunately in this case) it doesn't happen all that often. I feel confident we're fine.

I see you’re in the Seattle area, I am now as well. I signed the “binding agreement,” but some on this thread have suggested that it wouldn’t be enforceable under WA state law. Any thoughts on that as a fellow Washingtonian?

 

[Taycanfrank]

I see you’re in the Seattle area, I am now as well. I signed the “binding agreement,” but some on this thread have suggested that it wouldn’t be enforceable under WA state law. Any thoughts on that as a fellow Washingtonian?

We can't legally buy a Rivian in WA.. so we're buying our Rivian in Illinois. So we should be fine, as Illinois law on binding contracts is well within the scope to claim the credit. Loopholes are nice. (Rivian is handling all of that, nothing special we need to do.)

 

[McMoo]

Hey, don't call my brother my friend.

For reference, he looked even more into it today, including what Rivian sent (he is also a preorder holder) and he remains confident it's sufficient for most to claim the credit. He would/will claim it and advise clients to as well.

I do enjoy when he's wrong, but unfortunately (fortunately in this case) it doesn't happen all that often. I feel confident we're fine.

You can send him the technical info I provided from post 30 if he doesn’t have it. I won’t be giving public tax advice on a forum but know what I’ll be doing.

 

[Taycanfrank]

You can send him the technical info I provided from post 30 if he doesn’t have it. I won’t be giving public tax advice on a forum but know what I’ll be doing.

To be clear, I'm certainly not giving tax advice and I'm just passing along what he's said. It's certainly possible his opinion will change between now and people receiving a Rivian & actually filing taxes in this situation, but he is aware of what you've posted and it doesn't change his opinion as of today.

MY opinion has always been, and continues to be, if you need the tax rebate for the Rivian to make sense for you, get something else. Take the money if it's available but it shouldn't be a consideration in buying a Rivian.

 

[Gamma rays]

Hey, don't call my brother my friend.

For reference, he looked even more into it today, including what Rivian sent (he is also a preorder holder) and he remains confident it's sufficient for most to claim the credit. He would/will claim it and advise clients to as well.

I do enjoy when he's wrong, but unfortunately (fortunately in this case) it doesn't happen all that often. I feel confident we're fine.

I am curious who ultimately would decide whether the BPA we signed is good enough. If IRS challenges me on validity of the BPA during an audit and I disagree, where do I go from here? Do I need to hire a tax lawyer to fight this? Will it cost more than the $7.5K?

GR

 

[McMoo]

I am curious who ultimately would decide whether the BPA we signed is good enough. If IRS challenges me on validity of the BPA during an audit and I disagree, where do I go from here? Do I need to hire a tax lawyer to fight this? Will it cost more than the $7.5K?

GR

Yes, and it will not be cost effective to have an attorney or cpa do anything more than send 1 response letter. I’ll take it on if I decide to take the credit and it’s questioned since I can do the work myself. Maybe you can all start a go fund me if that happens

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