Difficulty filing IRS $7500 tax credit

[UnsungZero_OldTimeAdMan]

When you took delivery you cannot get the full 7500 in 2023.

With a binding agreement, sure you can. You take delivery, you amend your 2022 return get check 2023... if IRS hadn't shut down e-file for the year. Nothing to do with which quarter of 2023 you take delivery in. You can even take delivery in 2024, per IRS guidance. You just can't wait forever to amend your 2022 return. There is statue of limitations on amendments ("within 3 years after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later").

https://rivian.com/support/article/...EV-tax-credit-using-a-binding-order-agreement

"The IRS has now released guidance on how taxpayers with valid written binding contracts signed on or before August 15, 2022 can claim the original EV tax credit—without restrictions on vehicle MSRP, buyer income, and manufacturing requirements—even if they take delivery of their vehicle in 2023 or later*.

*tax return amendments cannot be done indefinitely. Please consult a tax professional for further detail. "

Sure you can file as part of your 2023 return—and forget that you have the binding agreement—and settle for $3750 instead of $7500**. But... why? Surely e-file isn't the only way to submit an amendment?

**Unless you are referring to the transitory rules where Treasury had not decided on battery sourcing requirements. IIRC, they made their decision known around 4/17. IRS info here.

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[RCden12]

Fire your CPA. jk

Bad advice. The backdating of purchase (and that's exactly what the binding agreement is) is only valid through amending your '22 return. Because that is the year you agreed to turn the reservation into an official agreement to purchase. You and your CPA need to read and understand this: https://rivian.com/support/article/...EV-tax-credit-using-a-binding-order-agreement The IRS guidance is straight-forward and specific on which year you must amend.

If you file as '23, with IRA already in effect, the binding agreement is null and void (because you entered agreement to buy in '22, not '23). And if you qualify under IRA restrictions, and make claims on your '23 return, you'd only be eligible for $3750 max.

Appreciate all the well explained thoughts here! My CPA doesn’t seem to understand what I’m asking for despite me sending him the great Rivian explanation link you provided in your response.

I’m getting the feeling he either isn’t comfortable doing the amendment or doesn’t believe me or what I’m asking for.

If I used a CPA for e-filing, does anyone happen to know if I can find some type of self-filing tax software (ie Turbotax) that I can personally go and amend my 2022 tax return myself if I didn’t use TurboTax to initially file? Or do I have to find a new CPA?

 

[UnsungZero_OldTimeAdMan]

Appreciate all the well explained thoughts here! My CPA doesn’t seem to understand what I’m asking for despite me sending him the great Rivian explanation link you provided in your response.

I’m getting the feeling he either isn’t comfortable doing the amendment or doesn’t believe me or what I’m asking for.

If I used a CPA for e-filing, does anyone happen to know if I can find some type of self-filing tax software (ie Turbotax) that I can personally go and amend my 2022 tax return myself if I didn’t use TurboTax to initially file? Or do I have to find a new CPA?

I think you can only use TurboTax if your original return was filed through TurboTax.

"If you did not file with TurboTax, you cannot use TurboTax to amend. You amend using the same service that you filed with, or you can download Form 1040X from the IRS and do a manual amend"

 

[runwithscissors]

I filed in mid-July, per IRS guidance as conveyed through Rivian. They accepted, reviewed, processed and issued a check in 3 weeks. If they change their mind and want to come after me for their sudden change of heart, they can speak to my lawyers about the $7500+interest+mental trauma+legal fees.

Ya I agree, it's definitely worth the "gamble" of paying interest instead of walking away from $7500. Someone would have to be silly to turn this down if you signed the PBA. I had a similar experience with my filing, processed and a check pretty quickly. I never get anything back from the guberment so it was a nice surprise lol

 

[UnsungZero_OldTimeAdMan]

Ya I agree, it's definitely worth the "gamble" of paying interest instead of walking away from $7500. Someone would have to be silly to turn this down if you signed the PBA. I had a similar experience with my filing, processed and a check pretty quickly. I never get anything back from the guberment so it was a nice surprise lol

The IRS can do pretty much whatever they want, because they don't care and it's up to the legal system to provide you a chance to challenge and decide for or against your beef with them. But it'd be pretty F'ing dumb of them to provide official guidance, accept the amendment, review/process and ultimately issuing a check... Only to say "just kidding, you owe us now".

I understand CPAs have to be cautious. It's their training and nature to be risk-adverse—I am son of one (who gave everyone in the family a complex about taking any degree of risks, lasting long after his death). But, here, it's a fine line between prudent caution and paranoia. If you're so worried about being hit by a car while crossing any street, you'd never leave home (or buy a car, any car).

I'm not a millionaire. I could have been (thanks a lot Putin, you ass). I'm just a nobody. If they want to audit me after accepting and approving my amendment for payment—over some millionaire social influencer who pays no taxes and own several cars each costing several times the cost of my R1T—then I guess it is what it is and I'll cross that bridge when I get there.

What's that line in Dune? "Fear is the mind killer".

 

[JWreck]

We took delivery in May and are still waiting on our 2022 amended return to be processed. After the initial 16 week wait, they have kept telling me “30 more days”, “30 more days”…with no willingness to escalate.

I finally called the tax advocacy center (also work for the government) and they called back after 3 additional weeks saying they’ve sent a request to expedite the processing and that the IRS has a week to respond.

However, they mentioned that mid-December the IRS does “system maintenance” and won’t be processing angain until mid January.

They did say we will be paid interest (I’m sure not market rate) but at this point I just want the $7500. The tax advocate said it all depends on which office it went to. Some have more capacity, some are understaffed or have too much coming in…I mean it’s the IRS so I didn’t have high expectations but this has been a PITA.

 

[SANZC02]

With a binding agreement, sure you can. You take delivery, you amend your 2022 return get check 2023... if IRS hadn't shut down e-file for the year. Nothing to do with which quarter of 2023 you take delivery in. You can even take delivery in 2024, per IRS guidance. You just can't wait forever to amend your 2022 return. There is statue of limitations on amendments ("within 3 years after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later").

https://rivian.com/support/article/...EV-tax-credit-using-a-binding-order-agreement

"The IRS has now released guidance on how taxpayers with valid written binding contracts signed on or before August 15, 2022 can claim the original EV tax credit—without restrictions on vehicle MSRP, buyer income, and manufacturing requirements—even if they take delivery of their vehicle in 2023 or later*.

*tax return amendments cannot be done indefinitely. Please consult a tax professional for further detail. "

Sure you can file as part of your 2023 return—and forget that you have the binding agreement—and settle for $3750 instead of $7500**. But... why? Surely e-file isn't the only way to submit an amendment?

**Unless you are referring to the transitory rules where Treasury had not decided on battery sourcing requirements. IIRC, they made their decision known around 4/17. IRS info here.

I’m aware of that but not on 2023, it has to be a revised 2022.

My understanding was his accountant was saying to claim it on his 2023 return.

 

[vicks]

The binding contract email went to my junk email n I couldn’t sign it. Can I still apply for $7500 credit?

 

[Supratachophobia]

The binding contract email went to my junk email n I couldn’t sign it. Can I still apply for $7500 credit?

Unfortunately no. Rivian has a copy and so do you if your sign

 

[UnsungZero_OldTimeAdMan]

The binding contract email went to my junk email n I couldn’t sign it. Can I still apply for $7500 credit?

Clearly no. Not without putting yourself in actual legal risk. You’d be lying about having signed it; tax fraud (upto $100k in fines and upto 5 yrs in the pen, per Google search).

 

[vicks]

Clearly no. Not without putting yourself in actual legal risk. You’d be lying about having signed it; tax fraud (upto $100k in fines and upto 5 yrs in the pen, per Google search).

thanks for replying, my question was do I still have this option where legally I can claim.

 

[UnsungZero_OldTimeAdMan]

thanks for replying, my question was do I still have this option where legally I can claim.

Still no. Once IRA was signed into law on 8/16/2022 it became law, until overturned or replaced by another.

 

[Mooeymoose]

I am in a similar situation but I files my own taxes. I just sent the paper correction and have been waiting about 5 weeks thus far. I can update you if or when I get my check.

 

[AdaminFlag]

We took delivery in May and are still waiting on our 2022 amended return to be processed. After the initial 16 week wait, they have kept telling me “30 more days”, “30 more days”…with no willingness to escalate.

I finally called the tax advocacy center (also work for the government) and they called back after 3 additional weeks saying they’ve sent a request to expedite the processing and that the IRS has a week to respond.

However, they mentioned that mid-December the IRS does “system maintenance” and won’t be processing angain until mid January.

They did say we will be paid interest (I’m sure not market rate) but at this point I just want the $7500. The tax advocate said it all depends on which office it went to. Some have more capacity, some are understaffed or have too much coming in…I mean it’s the IRS so I didn’t have high expectations but this has been a PITA.

Same boat here...still waiting. Just talked to the IRS and they said "30 more days". No mention of system maintenance or interest to me. Good to know there is an advocacy center. Which I guess helps...or not

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