Some EV Buyers Getting a Nasty Tax Surprise

Some buyers of electric vehicles last year may not get the tax rebate they were expecting, through no fault of their own, reports NPR. The problem is that their dealer failed to file the paperwork in a new online portal created by the IRS. As the story explains, the tax agency made big changes to the EV rebate last year, including the new portal. The Treasury Department worked with dealer associations to get the word out, and it seems that most got the message: NPR reports that 14,000 dealerships signed up to use the new portal.

However, that leaves roughly 3,000 dealerships that didn't register, meaning they likely filed paperwork on any EV sales the old way. It's not clear how many people might be affected, but NPR has spoken to a half-dozen buyers whose tax returns have been rejected over the gaffe. "It was the wrong form," the general manager of a dealership in Santa Fe, New Mexico, tells the outlet regarding one woman's sale. "We're working to get it resolved for the customer."

However, it's not clear the issue can be resolved unless the IRS bestows a sort of amnesty on the errant returns. One upside to the new system is that it allows most people to get their rebate—worth up to $7,500—at the time of purchase, rather than waiting for tax time, as previously reported by CNBC. (More electric vehicles stories.)