Oregon EV Buyers Face Tax Credit Challenges Due to Dealership Paperwork Errors

Several Oregon residents who purchased electric vehicles (EVs) are encountering difficulties in securing the $7,500 federal tax credit due to dealership oversights in filing necessary IRS paperwork.

Katie Larsell and Michael Schilmoeller of Portland bought a Kia EV6 in late August, anticipating the federal tax credit. However, they discovered that their dealership had not submitted the required 'time-of-sale report' to the IRS within the mandated three-day period. Larsell expressed her concern, stating, 'I really had to push. The way this went, it was almost like they didn’t know about it.'

Similarly, Richard Curtis and Jan Apland-Curtis, who purchased the same vehicle earlier in the year, found themselves in a comparable situation. Curtis remarked, 'We were blindsided. We said, 'No, that can't be right.''

The IRS requires dealerships to file a 'time-of-sale report' within three days of an EV purchase to confirm the buyer's eligibility for the tax credit. Failure to comply can jeopardize the buyer's ability to claim the credit. While the IRS has allowed exceptions for late submissions if dealerships provide valid reasons, the onus remains on dealerships to adhere to these requirements.

The National Auto Dealers Association has previously alerted dealerships about the importance of timely paperwork submission. Despite these warnings, some dealerships continue to overlook these obligations, potentially affecting numerous EV buyers. Apland-Curtis voiced her concern, stating, 'We think this is happening to a lot of people, and it doesn’t feel fair to the consumer.'

To ensure eligibility for the federal tax credit, EV buyers are advised to:

• Request the 'time-of-sale report' and IRS confirmation from the dealership promptly.

• Verify that the dealership has submitted the necessary documentation within the required timeframe.

• Follow up with the dealership's management if documentation is not received promptly.

By proactively managing these steps, buyers can safeguard their entitlement to the federal tax credit.