So, I called Hyundai about the IRS letter about the EV Tax Credit

I spoke to someone at the IRS and she said these letters were just because people have been trying to claim the credit in used EVs.



Sent from my iPhone using Inside EVs

 

Interesting.

It would also be easy for someone to try and fraudulently claim the credit by using VIN numbers from a dealer website.

 

I also got a letter from the IRS asking me to provide additional documentation. Still waiting to hear back.

 

I don't want to jinx myself, but I haven't received the letter yet. Car was purchased in July 2019 and my 2019 taxes were filed electronically (TurboTax) in March, 2020.

 

I too got the IRS "We're auditing your return" letter re the Plug-In Electric Vehicle Credit, dated Nov 30 2020. I faxed (yep, no email or attachments allowed) copies of my Bill of Sale, VIN Nameplate, picture of my Kona plugged into my charger, and for good measure, a screen capture of the IRS website listing the Kona EV as qualifying for the credit. Got a "Received your Response" letter dated Jan 11, 2021, and just received the "We are closing your examination with no changes" letter dated March 29, 2011. YMMV.

 

This is great news! 1st time hearing anyone with some success on this stupid audit. I'm still waiting a response from a 16 page fax sent a month ago. My response did include the 9 page IRS-Hyundai correspondence that Robbert posted.

 

When I bought my car in California there was a $7500 Federal Tax Rebate. The Dealer reduced the Price of the car by $7500 and they took the rebate. Knowing how these Finance Guys also called the TO for Take Over Guys are so sleazy, I have my doubts if my car was ever reduced by the $7500. I was told I needed a Forensic Accountant to analyze the documents; A Standard CPA wouldn't be sufficient!

 

Umm, yeah, we have a 2019 Kona EV and have been trying to get the IRS off our backs for a few weeks now. So glad I found this forum and now know that we’re not being singled out. Is there any summary of what’s the state-of-the-art response as of 5/23/21? Has anyone heard back from the IRS with a positive response? Or are we just going to send letters back and forth indefinitely until they seize our 2020 refund?

 

I have not heard back from the IRS yet.

 

Don't quite understand why IRS would ever initiate this type of letter. Hyundai has not come close to the limit for qualifying for the tax credit. I would analysis the VIN for where it is in the sequence and compare it with others. This kind of response doesn't make sense.

 

You'll have to search the forum but I think you'll find some people who resolved the matter by calling the IRS and when the IRS rep looked it up they were told it was taken care of. Others submitted documentary proof that it's for an EV. I think it had something to do with the VIN's not being associated with EV's - maybe they were just listed as "Kona" or something like that.

 

Yes, and the IRS website lists each model year of the Kona Electric as eligible for $7,500. That's not the issue here at all.

As far as I can tell, some IRS system doesn't recognize the VIN of a Kona Electric as being eligible. I'm not sure if that's the IRS's fault or Hyundai's (or someone else's, like DOE, which is responsible for helping to certify car model as eligible).

Honestly, that doesn't bug me as much as the degree of difficulty it seems some people are having in proving that their vehicle is eligible. IRS is asking for things that don't exist, rejecting legitimate documentation, and Hyundai USA could care less.

IMHO Hyundai -- which presumably has experts and lawyers who could help -- needs to step up and help buyers. Hyundai should figure out the problem and get buyers what they need to effectively fight this.

In the mean time, I think owners who are going through this should contact an outlet like InsideEVs or Electrek, show them the posts here and elsewhere and try to get them to report on it. That might be the only way to get Hyundai's attention.

(I personally have a 2020, bought it last year and filed for the credit, so I'm assuming there's a good chance I'll have to deal with this soon.)

 

I reviewed my Kona EV Lease Contract with my CPA, a very large National Firm. The $7500 Federal Rebate was applied by my Dealer and the Price WAS reduced by $7500. In re my previous post on April 10th where I Stated "Knowing how these Finance Guys also called the TO for Take Over Guys are so sleazy, I have my doubts if my car was ever reduced by the $7500". Well, my accountant said it was. But what I was referring to when I made the Original Post and My Accountant confirmed is we don't know if the dealer Jacked the Price up by $7500 or some other amount before reducing the price by $7500. But, Judging by the Window Sticker Price, they didn't. Maybe I was being a little harsh on them after I found out they added a $1,000 Alarm System which is Totally Unnecessary because the car can be disabled by BlueTooth if stolen. Yes, I made them take it off but only when I got up and started to walk out did they relent. "I Told You I Don't Want that TRU-COAT" Customer to William H. May in the Movie Fargo, Remember? It's my Favorite Scene in the movie.

 

Hyundai received the federal rebates for leased vehicles. My vehicle is leased. I have not received a letter. One would think that if there were an issue with VIN numbers, that Hyundai Corporate or local dealer would be aware as it would affect the leased vehicles.

 

Follow up that on October 12th, the IRS finally "closed the examination (of my tax return) with no changes". So, guess I'm not a lying tax dodger after all!

 

When you bought (or Leased) your Car, the Dealer lowers the Sticker Price by the amount of the Rebate. The Dealers Claims the Rebate, not you. At least this is what I was told by two different dealers when I leased my 2020 Kona EV Ultimate and the same thing when I leased my 2021 Kona EV Ultimate, and my Contract stated both times that the car price was reduced by the amount of the rebates. I never heard of this IRS Letter you are talking about. In fact, my 2021 had a total of "$12,250 in Rebates and Non Cash Credits" or $4750 more than the $7500 Federal Tax Credit. When I asked why the Dealer said Hyundai was having trouble selling the cars so they kicked in another rebate on top of the Federal Rebate. I didn't argue with them. Because of the additional Hyundai Rebate, my Lease payment dropped from $518 per month on a 4-year lease to $375 per month on a 3-year lease. I didn't argue with them on this either.

 

There is confusion between credits and rebates. The Fed offers a credit against tax liability, states or dealers extend rebates. The process for Federal tax credit is different for leased versus purchased vehicles. The dealer gets the credit on leased vehicle. Buyers apply for credit against taxes owned. / apparently