The IRS has provided an extension of time for clean vehicle dealers and sellers to submit to the IRS their time-of-sale reports. Dealers and sellers now have until January 19, 2024, to submit time-of-sale reports for vehicles sold January 1, 2024, through January 16, 2024. (IR 2024-2, 1/5/2024)
Sellers of vehicles that are eligible for a new clean vehicle credit under Code Sec. 30D must furnish a report to both the buyer and the IRS at the time of sale for those vehicles to be eligible for a credit under Code Sec. 30D. This includes manufacturers who sell directly to customers.
Dealers who sell vehicles eligible for a previously owned vehicle credit under Code Sec. 25E also must furnish reports to both the buyer and the IRS at the time of sale for those vehicles to be eligible for a credit under Code Sec. 25E.
The IRS created an online portal, the IRS Energy Credits Online (IRS ECO), which dealers/sellers must use to submit the required reports to the IRS. The IRS ECO portal became available on January 1, 2024.
To allow reporting entities time to get used to the IRS ECO system, the IRS has temporarily extended the 3-day period to submit the required time-of-sale reports. However, the IRS encourages reporting entities use the extension only if they are unable to successfully submit to a time-of-sale report for customer intending to claim an eligible vehicle credit on their tax return.
The IRS will be hosting office hours January 9, 10, and 11 and January 16, 17, and 18 between 2-2:30 pm EST to help dealers and sellers with time-of-sale reporting. Representatives from the IRS will be available to answer questions.
For more information about the previously owned clean vehicle credit, see Checkpoint’s Federal Tax Coordinator ¶A-4794.
For more information about the new clean vehicle credit, see Checkpoint’s Federal Tax Coordinator ¶ L-18001.
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