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

[FromBostonSouth]

My initial (smart-a$$) reaction is that you won't find specific language in the law that says " ... and there is no restriction for taxpayer's modified adjusted gross income." Nor will you find specific language stating no restriction based on eye color at birth .... or whether your mother was a vegan during the tax year ... etc., etc. If the law doesn't say such-and-such is a restriction, can't we reasonably conclude that such-and-such is not a restriction?

I'll try to be more helpful. Let's look at the letter of the law. The MAGI requirements in the IRA are in Section 30D(f) Special Rules. Specifically, the requirements are in rule #10 Limitation based on modified adjusted gross income.

In the actual letter of the law, prior to the language for rule #10, is this sentence: "(f) SPECIAL RULES.—Section 30D(f) is amended by adding at the end the following:" After that sentence are rules #8, #9, and #10. (Wait .... so rules 1 through 7 must be in some prior legislation, right? Keep reading.) If you want to read the actual law, it is available here (IRA -- the whole thing). To find the Special Rules sub-section, scroll down to PDF page 141. The top of the page is labeled "136 STAT. 1957" .

The fact that they added a rule with limitations on MAGI implies that there was previously (prior to the IRA) no rule with MAGI requirements.

But let's dig deeper. Let's look at the letter of the law prior to the Inflation Reduction Act of 2022. Public law 111-5, also known as the American Recovery and Reinvestment Act of 2009, contained amendments to Section 30D. We'll look at section 1141, CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. Here, in the 2009 legislation, you'll find sub-section (f) with Special Rules 1 through 7. Rule #1) BASIS REDUCTION. Rule #2) NO DOUBLE BENEFIT. Rule #3) PROPERTY USED BY TAX-EXEMPT ENTITY. Etc., etc. There is nothing in the 7 Special Rules contained in the 2009 law that addresses taxpayer MAGI. So ... can't we reasonably conclude that there was no restriction on income??? The complete text of the 2009 law is here (public law 111-5 ... the whole thing). To find the sub-section on Special Rules, scroll down to the very bottom of PDF page 213 ... the page is labeled "123 STAT. 327".

That's my best effort to find the "smoking gun" your IRS agent is apparently seeking.

My grain: this is fantastic and exactly what they needed! I came across this IRC and received confirmation today from appeals office that this is what they needed! For all those out there getting denied based on AGI, what my grain posted is the information your appeal should state, quote, cite, and reference. Thank you!

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[Jakelake]

I received a check from IRS today for $7500 plus interest. I Filed my 2022 amended return last September 7th. After months of contacting the IRS and receiving no feedback from them as to the status of my return I was assigned an IRS advocate in June 2024. I never talked to the advocate because she never answered her phone or responded to any email I sent. She sent a letter 12 July telling me to fill out Schedule A (form 8936) Clean Vehicle Credit Amount. I faxed lots of info to her including the guidance letter from Rivian for filing 2022 Amended returns, the IRS guidance on binding contracts, and a note that the requested form was for year 2023 returns and did not apply to my 2022 amended return. All that was sent on July 15, about a month ago. I then sent the Schedule A (form 8936) on 17 July because the letter said that was the dead line to send that in even though it did not apply to my situation. I filled it out with a $7,500 tax credit on line 9, Part II of the Form. Also PART I, line 3 has the date April 24, 2023 when I received the Rivian. I never heard anything back from the Advocate but today I got a check. It was a very frustrating experience and very stressful for almost a full year.

 

[BBQ]

I have been reading this thread from the start because I am about to taking delivery of 2025 Dual Max as an "early reservation holder".

Here's what I can summarized:
- the 2022 tax rule applies
- no income cap
- 2022 EV credit guidance applied; all R1S & R1T are eligible for $7,500

The Dual Max with early reservation discount come out to$79k (before tax and destination)

Will this consider under $80k threshold?

What do I need to be included to accompany form 8936 for submission?

My wife did not download "binding contract" and Rivian does not have a copy. Is that a problem?

 

[Mygrain]

My wife did not download "binding contract" and Rivian does not have a copy. Is that a problem?

If you did not enter into a written binding contract with Rivian between 1/1/22 and 8/15/22, then the transition rule in the Inflation Reduction Act will not apply. You will claim the credit in the tax year that you put the vehicle in service (ie, took delivery). You will use the latest version of the 8936 form and instructions. You will be subject to the MSRP cap (sound like your good on that one) and to the AGI cap, and your credit will depend on whether your vehicle meets requirements for critical minerals and battery components.

I gather that you paid Rivian $1000 to reserve or preorder an R1 before the 3/1/22 price increase. Good for you! But that's not the same as signing the contract that RIvian offered in August of '22.

Although many forum members have said that they sent a copy of their written binding contract with their Form 8936, I did not send a copy of my contract with my 1040-X. The instructions for Form 8936 do not mention sending a copy of the contract. My amended return was held up because the reviewing agent wanted more information ... but he never asked for a copy of the contract. And I just learned yesterday that my 2022 amended return was approved for a $7500 credit for my R1S delivered in December of '23.

Verbatim from Instructions for Form 8936 (Rev. January 2023):
Transition rule. If you purchased, or entered into a written binding contract to purchase, a qualified plug-in electric drive motor vehicle after 2021 and before August 16, 2022, you may elect to treat such vehicle as having been placed in service on August 15, 2022, the day before the enactment date of the Inflation Reduction Act of 2022.

 

[BBQ]

If you did not enter into a written binding contract with Rivian between 1/1/22 and 8/15/22, then the transition rule in the Inflation Reduction Act will not apply. You will claim the credit in the tax year that you put the vehicle in service (ie, took delivery). You will use the latest version of the 8936 form and instructions. You will be subject to the MSRP cap (sound like your good on that one) and to the AGI cap, and your credit will depend on whether your vehicle meets requirements for critical minerals and battery components.

I gather that you paid Rivian $1000 to reserve or preorder an R1 before the 3/1/22 price increase. Good for you! But that's not the same as signing the contract that RIvian offered in August of '22.

Although many forum members have said that they sent a copy of their written binding contract with their Form 8936, I did not send a copy of my contract with my 1040-X. The instructions for Form 8936 do not mention sending a copy of the contract. My amended return was held up because the reviewing agent wanted more information ... but he never asked for a copy of the contract. And I just learned yesterday that my 2022 amended return was approved for a $7500 credit for my R1S delivered in December of '23.

Verbatim from Instructions for Form 8936 (Rev. January 2023):
Transition rule. If you purchased, or entered into a written binding contract to purchase, a qualified plug-in electric drive motor vehicle after 2021 and before August 16, 2022, you may elect to treat such vehicle as having been placed in service on August 15, 2022, the day before the enactment date of the Inflation Reduction Act of 2022.

Yes, she did sign the binding contract from this link. She lost the "actual contract". Now the link has expired...

 

[Tanuki68]

Yes, she did sign the binding contract from this link. She lost the "actual contract". Now the link has expired...

Send me a PM is you’d like a copy in PDF. Oddly, there is NO personal identifying data on the contract. It even says “customer record”. My assumption is that it’s like a 1099/W2 form and the IRS has a copy and you have a copy and they just want to be sure you claim what they know you got. Rivian may have sent them all the contracts from those of us that went through that process. That’s my guess. I’ll be pulling the trigger any day now for mine before we get much closer to the expiration date.

 

[DucRider]

Send me a PM is you’d like a copy in PDF. Oddly, there is NO personal identifying data on the contract. It even says “customer record”. My assumption is that it’s like a 1099/W2 form and the IRS has a copy and you have a copy and they just want to be sure you claim what they know you got. Rivian may have sent them all the contracts from those of us that went through that process. That’s my guess. I’ll be pulling the trigger any day now for mine before we get much closer to the expiration date.

Wondering how a document with no personal identifying information could possibly qualify as a "Contract"?
Also the issue that it fails the requirements listed on the IRS site to be a "Binding Contract"

 

[Tanuki68]

Wondering how a document with no personal identifying information could possibly qualify as a "Contract"?
Also the issue that it fails the requirements listed on the IRS site to be a "Binding Contract"

It think I recall doing a docusign or something when my deposit went to $1000. After the docusign and additional deposit I was sent an email from Rivian And it contained a link to the PDF I referenced.

 

[Mygrain]

It think I recall doing a docusign or something when my deposit went to $1000. After the docusign and additional deposit I was sent an email from Rivian And it contained a link to the PDF I referenced.

That's consistent with my recollections. One would hope that Rivian kept a record of each e-signature (and date) that they received. My paper copy (printed from the PDF that Rivian emailed to me) has my hand-printed name and wet signature and has a Seller Signature that reads "E-Signed by Rivian, LLC on August 10, 2022".

Yes, she did sign the binding contract from this link. She lost the "actual contract". Now the link has expired...

I think you're covered.

When you file your amended 2022 return, you should use these instructions.
You should use this 2022 version of Form 8936.

To prevent the hassle that I just went through (IRS agent had never heard of the Transition Rule), I suggest that your 2022 1040-X "Explanation of Changes" box should mention that you are filing in accordance with Internal Revenue Bulletin No. 2023-16, page 749, which describes section 13401(l) of the IRA, otherwise known as the Transition Rule.

irb23-16.pdf (irs.gov)

 

[ukyank]

So my experience was completely different. Had binding contract. Purchased a 2025 R1S in July. Amended return mid July, oddly first received a letter from the IRS stating there was no change to my tax situation, but received my refund check a few days after that. Time between filing amendment & receiving check was less than 3 weeks. I did not include the binding contract or any other supplemental info. I filed the amendment electronically (well my CPA did) which may have helped.

 

[Yossarian]

I have been reading this thread from the start because I am about to taking delivery of 2025 Dual Max as an "early reservation holder".

Here's what I can summarized:
- the 2022 tax rule applies
- no income cap
- 2022 EV credit guidance applied; all R1S & R1T are eligible for $7,500

The Dual Max with early reservation discount come out to$79k (before tax and destination)

Will this consider under $80k threshold?

What do I need to be included to accompany form 8936 for submission?

My wife did not download "binding contract" and Rivian does not have a copy. Is that a problem?

I was also an early pre-holder, and the discount on my 2024 R1T PDM/Large/All-terrain brought the out-the-door price to under $80k. The rules for the IRA vehicle credit under the IRA are based on MSRP, so unfortunately, my Rivian - and yours - will not qualify for it, which in any case would have been 50% of the full $7,500. It looks like you have the option to claim the full credit under the pre-IRA rules though.

@Mygrain has posted an excellent summary of what you need to do, and has also very thoughtfully included links to the relevant IRS forms. I filed an amended return about two weeks after taking delivery of my Rivian this past June, and it was entered into the IRS system in early July. The delay in getting things into the IRS in my case is because I did a paper filing; it should be quicker if you do it electronically. Once you've submitted your amended return, you can check its progress via the Where's My Amended Return page on the IRS website.

 

[Jakelake]

When I signed my binding contract it included a non refundable $100 payment. I had already paid $1000 dollars to reserve my order but that was refundable.

 

[Rividiculous]

When you file your amended 2022 return, you should use these instructions.
You should use this 2022 version of Form 8936.

To prevent the hassle that I just went through (IRS agent had never heard of the Transition Rule), I suggest that your 2022 1040-X "Explanation of Changes" box should mention that you are filing in accordance with Internal Revenue Bulletin No. 2023-16, page 749, which describes section 13401(l) of the IRA, otherwise known as the Transition Rule.

Great idea. I will do this.

The IRS is understaffed and underfunded. Some people seem to think that’s a good thing but it means that it’s hard for them to apply the rules fairly—and it means I can’t get an agent to help sort out an identity theft issue that has cost me thousands. And for lots of people on this forum, it means it’s harder to apply a law that was put in place to help us jumpstart the EV industry by taking a chance on Rivian.

 

[Batman]

I'm still waiting on my return. Filed it online 3/11/2024. When I check online it states it has not been processed and to call them. (I haven't received any notice from them in mail or email)

When you call them, it takes all your info and confirms they have your return but its taking longer to process and tries to connect you to an agent then states we are super busy and call back tomorrow.

Anyone else have experience with this scenario?

 

[@n!m@l!@]

I am in in a similar situation. My amended return was received on 5/06/2024, and the status when I check online is also to call them.

Anyone here who was in this situation but eventually got their refund? How long did it take? Did you have to call and were you able to talk to someone?

Thanks!

I'm still waiting on my return. Filed it online 3/11/2024. When I check online it states it has not been processed and to call them. (I haven't received any notice from them in mail or email)

When you call them, it takes all your info and confirms they have your return but its taking longer to process and tries to connect you to an agent then states we are super busy and call back tomorrow.

Anyone else have experience with this scenario?

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