“IRS Fixes EV Tax Credit Issue for Car Owners: Dealers Can Now Report Sales Retroactively”

The IRS has created a fix for car owners who were unable to claim the EV tax credit this spring due to their car dealer not correctly reporting their 2024 purchase to the IRS. The National Automobile Dealers Association (NADA) announced that the IRS is now allowing dealers to report sales for qualifying clean vehicle credit transactions that occurred in 2024, even if they were not reported within the required three-day window.

The option to report sales retroactively was opened for testing on March 25 and officially rolled out today. Dealers can now use the portal to report sales that were previously missed. NADA stated that it is unclear how long this functionality will remain open, but dealers are encouraged to begin using the portal as soon as possible.

Some auto dealers were also affected by this issue, as they had provided the tax credit to shoppers upfront but failed to report the sale to the IRS in a timely manner. NADA advocated for the IRS to introduce a remedy for this problem, and members of Congress were made aware of the issue through messages from their constituents.

To benefit from the reopened portal, taxpayers will need to work with the car dealer who originally sold them the car. Only dealers can sign up for the ECO portal and submit sales to the IRS. This fix provides relief for car owners who were previously unable to claim the EV tax credit and ensures that both consumers and dealers can receive the benefits they are entitled to.