R1T $7500 Tax Return with binding purchase agreement/2022 Amended Tax Return

[UnsungZero_OldTimeAdMan]

Yes, I e-signed that document. I'm now researching how to apply it.

I could be wrong, but the document is only for your records—a receipt that you consented to Rivian releasing your owner info with IRS. Not needed to sent back or show IRS as part of the filing process.

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[jfornelli]

I could be wrong, but the document is only for your records—a receipt that you consented to Rivian releasing your owner info with IRS. Not needed to sent back or show IRS as part of the filing process.

That is correct. I just amended my return with the electric vehicle credit, so I'm golden. Just need to wait for the credit to show up in my bank account.

 

[FromBostonSouth]

The same exact thing happened to me and I am drafting my appeal now. I am a tax professional and deal with the IRS on a regular basis. I am concerned that this whole issue is beyond the comprehension of whoever will end up reviewing the appeal. The denial was clearly an automatic letter produced without any thought.

I suspected the rejection letter may have been an automatically generated letter. I also share your fears that the person on the appeals side may not have the experience or concern to remedy this. Suppose only time will tell.

 

[R1 EVY]

I guess I need to be more patient about waiting for my refund submitted in November.

I'm holding out hope that I get it before Elon's projected Rivian bankruptcy date (kidding).

Mine was submitted January 29th, so I really need to be patient. Until now, I've checked 3 times like it's imminent ?.

 

[Rividiculous]

Might be helpful to point them to the Code. In case you don’t have that handy, here’s a link. Click on Sec 30D Clean Vehicle Credit and then scroll way down to the section titled “Effective Date of 2022 Amendment; Transition Rule”.

https://uscode.house.gov/browse/pre...er1/subchapterA/part4/subpartB&edition=prelim

Language in the IRA itself is here:
https://uscode.house.gov/statviewer.htm?volume=136&page=1962

Disclaimer: I’m not a tax lawyer or other tax professional.

I do think they should fund the IRS though. It’d be nice if they helped those of us following the rules and went after the tax evaders. Sorry, have to vent. So hard to get the IRS on the phone even…

 

[Explorer3686]

8/15/2022 was the date entered on Form 8936 line 3 when my amended return was submitted. This seems to be a random and unfounded error on the IRS so wondering if anyone else received a similar rejection.

To quote the denial letter: "We cannot allow your claim for the clean vehicle credit because the vehicle's placed in service date is PRIOR to January 1, 2023" --Of course it was placed in service prior to January 1, per all the guidance, 8/15/2022 was the correct date to use.

The denial letter went on to say: "We cannot allow your claim for the clean vehicle credit because your Modified Adjusted Gross Income exceeds the maximum amount allowable based on your filing status". As other forum members have pointed out, and per the IRS website, tax payers holding a binding offer to purchase dated 8/15/2022 are not subject to ANY restrictions based on MSRP, income limits, or manufacturing requirements as the contract was signed the day before the Inflation Reduction Act was enacted.

I spent a decent amount of time drafting an appeal letter and located all references from the IRS website proving my case.

If anyone else finds themselves with a similar rejection letter, I'm happy to send over my appeal letter and supporting documentation!

Thanks all for the input. I'll update once I hear back from the Office of Appeals.

Hi, I am in the exact same situation. Would you please share your appeal letter?

 

[FromBostonSouth]

Hi, I am in the exact same situation. Would you please share your appeal letter?

No Problem. What is a good email for you?

 

[Explorer3686]

No Problem. What is a good email for you?

Just sent you a message via the forum site.

 

[ElmTree]

8/15/2022 was the date entered on Form 8936 line 3 when my amended return was submitted. This seems to be a random and unfounded error on the IRS so wondering if anyone else received a similar rejection.

To quote the denial letter: "We cannot allow your claim for the clean vehicle credit because the vehicle's placed in service date is PRIOR to January 1, 2023" --Of course it was placed in service prior to January 1, per all the guidance, 8/15/2022 was the correct date to use.

The denial letter went on to say: "We cannot allow your claim for the clean vehicle credit because your Modified Adjusted Gross Income exceeds the maximum amount allowable based on your filing status". As other forum members have pointed out, and per the IRS website, tax payers holding a binding offer to purchase dated 8/15/2022 are not subject to ANY restrictions based on MSRP, income limits, or manufacturing requirements as the contract was signed the day before the Inflation Reduction Act was enacted.

I spent a decent amount of time drafting an appeal letter and located all references from the IRS website proving my case.

If anyone else finds themselves with a similar rejection letter, I'm happy to send over my appeal letter and supporting documentation!

Thanks all for the input. I'll update once I hear back from the Office of Appeals.

I am having trouble explaining this $7500 option to my accountant.
Can you provide a your tax assistant so my account can consult with them? (Mass R1S $78,000 - signed Rivian doc and took delivery 9/30/2023.)
I am hoping to get the whole tax credit. Al 508 361 4185.

 

[FromBostonSouth]

Hi Al,

Below is an example appeal I sent to the IRS with the attached supporting documentation. I also included my Rivian Contract, the rejection notice sent by the IRS, and a copy of my amended 2022 return.

I am NOT a tax professional but drafted this, had my tax professional review and give the green light and so I sent it out. I DO NOT know if this will be effective but per the references, it is very clear this $7,500 credit is legitimate and should be honored without restrictions. Rivian has specific guidance your tax professional can follow posted on their website as well.

Lastly, the 4th Enclosure I used, the IRS Fact Sheet FS-2023-22 October 2023, was too large to attach as a file so below is the link: https://www.irs.gov/pub/taxpros/fs-2023-22.pdf

Hope this helps.

 

[FromBostonSouth]

Just sent you a message via the forum site.

Just posted my example appeal with the supporting documentation in this forum so it should be the last one. I do not see the message you had previously sent. Hope this helps. I am by no means a tax professional but seems pretty cut and dry given the references from the IRS website.

 

[Explorer3686]

Thanks!

 

[SANZC02]

Issues like this is why I chose to claim the 7500 for 2023. I signed the purchase agreement but since I took delivery January of 2023, kept sticker under 80k (79k), and am retired so can be flexible on my annual income.

Everything worked out with timing for me and I got my tax refund the other day with the full 7500 credited.

 

[neva6]

Thanks for posting the example and finding those documents. I am about to amend my 2022 return and had planned some similar guidance in the 1040X form, but your extra FAQs and sheets really amped up the clarity of information. I printed and highlighted specific sections as I need to mail in my 1040X. Fingers crossed!

 

[vandy1981]

I submitted my amended return via mail in November 2023 and it was finally marked as adjusted on 3/8/2024. I received the check 3/12/2024 ($7500+$505 in interest). It has not been marked as completed in the online tracking system.

My adjusted gross income was less than $150K in tax year 2022, so that fortunately didn't trigger any of the AGI issues that others seem to be having.

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