Has anyone received their refund for an amended 2022 federal tax return?

[nicus90]

Binding agreement used? Full $7500???

Binding agreement used? -Yes
Full $7500??? -Yes

Sponsored

 

[R1Sky Business]

15

What is the signed date on the binding agreement with Rivian is it Aug 15th or 16th?

 

[R1Sky Business]

Binding agreement used? -Yes
Full $7500??? -Yes

Winning!!!!!

 

[R1Sky Business]

Binding agreement used? -Yes
Full $7500??? -Yes

Time to go get more accessories!!!!

 

[R1Sky Business]

The first confirmed cases of successful refunds!!!!! The wild west lives on!!!!!

 

[93Dawg]

I read that the IRS has issued some guidance on binding agreements indicating that non-refundable 5% downpayment represented a significant commitment to purchase and therefore created a binding agreement. Has anyone else seen anything like that?

 

[R1Sky Business]

$100 is enough.

 

[R1Sky Business]

I submitted an amendment 5/5 after taking delivery on 5/5.

Any update? Should be anytime now.

 

[93Dawg]

Keep in mind that the IRS is legally obligated to process tax returns. Just because they are fulfilling that obligation does not mean that they agree with you taking the credit. Same thing is going on with Employee Retention Credits ($26,000 per employee credit that you see advertised on TV). They will process the returns and issue the refunds. But they will also audit you & take the money back along with penalties & interest.

 

[R1Sky Business]

Keep in mind that the IRS is legally obligated to process tax returns. Just because they are fulfilling that obligation does not mean that they agree with you taking the credit. Same thing is going on with Employee Retention Credits ($26,000 per employee credit that you see advertised on TV). They will process the returns and issue the refunds. But they will also audit you & take the money back along with penalties & interest.

Way to kill the buzz.

 

[Redmond Chad]

I read that the IRS has issued some guidance on binding agreements indicating that non-refundable 5% downpayment represented a significant commitment to purchase and therefore created a binding agreement. Has anyone else seen anything like that?

I did read that. But as I recall (take that for what it's worth), it also said this was a guideline, and it would likely depend on state laws for binding contracts. I read the law for my state (Washington) and Rivian's contract looks good here - WA law does not seem to set any minimum amounts.

Of course the only opinion that matters is that of future IRS auditors, and they may not have the same view. There's really no way to be sure. Even if you call the IRS now and ask, and even if they are willing to give you a solid answer, they note prominently that they cannot be held accountable for their answers. We will just have to wait and see. But there's been so much uncertainty around this I suspect they'll take a reasonably lenient view.

 

[DucRider]

I did read that. But as I recall (take that for what it's worth), it also said this was a guideline, and it would likely depend on state laws for binding contracts. I read the law for my state (Washington) and Rivian's contract looks good here - WA law does not seem to set any minimum amounts.

Of course the only opinion that matters is that of future IRS auditors, and they may not have the same view. There's really no way to be sure. Even if you call the IRS now and ask, and even if they are willing to give you a solid answer, they note prominently that they cannot be held accountable for their answers. We will just have to wait and see. But there's been so much uncertainty around this I suspect they'll take a reasonably lenient view.

You missed the AND portion

Meets State law
AND
5% minimum non-refundable

 

[Redmond Chad]

Dang. I typed in a bunch of careful stuff, dropped my mouse and lost it all. Here's a version I typed faster; hope I didn't mess it up:

Hastily written guidance from the IRS last August said (according to non-IRS summaries; the original appears to be gone) that a 5% non-refundable deposit could be "an indication" (rather than a requirement) of a binding contract. But that doesn't matter, because the IRS overwrote that guidance with new stuff. Which they could do again.

The current IRS guidance (posted earlier in this thread by ducrider, thanks; or view it HERE) says:

What is a written binding contract?​

In general, a written binding contract :​

• is enforceable under state law, based on the state and relevant facts and circumstances, and
• does not limit the damages a buyer or seller can receive for a breached contract, such as forfeiting a deposit or paying a pre-determined dollar amount or a percentage of the total contract price for the vehicle.

An indication of a binding contract is if a buyer has made a significant non-refundable deposit or down payment.​

There is clearly, as ducrider noted, an "AND" clause, so it depends on more than your state's definition of a binding contract. But rather than looking for a specific percentage, it looks for damages not being limited. (I am guessing, but I suspect the "5%" mentioned earlier had been offered as an example of "significant". Funny that it STILL mentions that a significant deposit is an indication, given that it just said that it can't limit damages to a deposit or percentage. So much confusion in so few sentences).

Rivian's BPA says the non-refundable $100 is only "part of the consideration" we provide to Rivian. It doesn't specify damages if we don't buy the vehicle we are "obligated" to buy, but it doesn't limit them either. (Although practically the $100 does seem to be the limit...so does that matter, or the wording?) I'd once again say this all may be considered favorably given that even the initial IRS guidance wasn't issued until it was too late for BPAs to be drawn up in compliance...but I'd also reiterate that we won't know for sure until later.

I also note that the BPA does limit Rivian's damages if they breach, and the IRS says it can't be limited either way. So that is another thing to worry about.

These things are never certain until they're done. I've missed out on tax incentives before because my tax liability wasn't what I assumed it would be due to tax law changes. I think the only thing we can take away for certain is: don't COUNT on the 2022 tax credit just because you signed a BPA.

 

[CharonPDX]

I read that the IRS has issued some guidance on binding agreements indicating that non-refundable 5% downpayment represented a significant commitment to purchase and therefore created a binding agreement. Has anyone else seen anything like that?

The guidance was…. vague.

People are receiving refunds based on the Rivian Binding Purchase Agreement as signed; although we won't *REALLY* know until someone is actually audited and passes muster.

 

[vista1984]

Congratulations.

At least we know the amended return with binding agreement does not automatically trigger audit or any requiring more documents notice before refund.

Sponsored