IRS audit: PPI

Discussion in 'Gen 1 Prius Plug-in 2012-2015' started by acadia2012, Jul 16, 2014.

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  1. acadia2012

    acadia2012 Junior Member

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    Hi I am owner of 2013 PPI and had taken a $2500 credit from federal on form 8936, now IRS is auditing me for that and is asking me to Provide documentaion that qualifies me for that credit, they are asking for Manufacturers Certification or the Domestic distributors certification if foreign manufacturer to claim the credit along with sales contract. I do have sales contract but not the Manufacturer certification, so I called the Dealer and spent an hour trying to explain him and he had no clue so he asked me to call Toyota Finances/ Corporate. I called both of them and they seem to have no idea and spent hours on the phone with them and their only recommendation is to contact IRS or local dealer. I am very confused and don't know what to do to get the sorted out as I have a very narrow window of a week left to respond to IRS . Should I just disown the $2500 credit and pay IRS or what/where do i do to get this Certificate, Any help from this forum would be greatly appreciated..
    Thank you - Raj
     
    #1 acadia2012, Jul 16, 2014
  2. CharlesH

    CharlesH CA HOV Decal #5 on former PiP

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    #2 CharlesH, Jul 16, 2014
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  3. 2k1Toaster

    2k1Toaster Brand New Prius Batteries

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    When dealing with the IRS, send your money to them now. Also enclose a letter pointing out it is approved on their list, no extra forms required.

    The reason being things can get very nasty during the potential battle and if you owe them money, you will be charged interest and fees. When I had to sort out a few miscellaneous things on my 2010 taxes 2 years later I just wrote up a note in Word, very informal describing why I deducted what I did what I thought the laws meant and how I interpreted it. They legitimately found an error where I forgot to pay income tax on $12 of income (yes, $12, not $1200 or $12000, but less than a haircut $12) so in my note said sorry you guys are right about that. Got a letter back a month or two later saying all is well and forgiven, here is a cheque.
     
    #3 2k1Toaster, Jul 16, 2014
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  4. rogerv

    rogerv Senior Member

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    They got caught targeting Tea Party organizations, so now they are switching to PiP owners?:cool:
     
    #4 rogerv, Jul 16, 2014
  5. wjtracy

    wjtracy Senior Member

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    This is nuts... IRS does way too much challenging tax payers on exactly correct returns. I don't think this is the first PiP rejection for no good reason. They challenged my father on his accurate 401K withdrawals, and me a couple years ago on social security calcs re: overpayment refund. I just wrote back and said I used TurboTax and I believed in this case TurboTax was correct, and they agreed and said never mind.
     
    #5 wjtracy, Jul 16, 2014
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  6. drash

    drash Senior Member

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    This is because the spelling wasn't exactly the way it states on 30D. They aren't very good at association. It has to be exact.
     
    #6 drash, Jul 16, 2014
  7. CharlesH

    CharlesH CA HOV Decal #5 on former PiP

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    Are you referring to the 30D site saying "Toyota Motor Sales, S.S.A, Inc", not "U.S.A."? I thought that was kind of odd, too. I sent a private message to "Prius Team", which is Toyota Marketing USA, for comment.
     
    #7 CharlesH, Jul 16, 2014
    Last edited: Jul 16, 2014
  8. drash

    drash Senior Member

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    Yes. Most of the agents are VERY literal. They really are that clueless to the outside world. They aren't being mean or vindictive they just really don't know.
     
    #8 drash, Jul 16, 2014
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  9. 3PriusMike

    3PriusMike Prius owner since 2000, Tesla M3 2018

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    Just make sure that you do everything in writing. No emails since they might lose them and have no idea of how to do backups.

    Mike
     
    #9 3PriusMike, Jul 16, 2014
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  10. acadia2012

    acadia2012 Junior Member

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    On top of the $2500, they have penalised me 20% (thats $500) and 60$ interest totaling $3060 and then I have to pay fees to Tax consultant who says we can't fight them without manufacturer certificate and all I have is TurboTax return and Sales Invoice from the dealer. Thanks Raj
     
    #10 acadia2012, Jul 16, 2014
    Last edited: Jul 19, 2014
  11. acadia2012

    acadia2012 Junior Member

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    I tried reaching IRS on phone was on hold for 43 mins with no one to respond, my car dealer, toyota finaces and toyota.com are blaming one another and no one wants to take responsibility and issue me what IRS is looking for and many have no idea at these locations as they kept on transfering my line.. Thanks Raj
     
    #11 acadia2012, Jul 16, 2014
  12. JBumps

    JBumps Member

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    I'm a licensed CPA and hope I can provide some help. Have you sent any correspondence in response to their tax letter?
     
    #12 JBumps, Jul 16, 2014
  13. JimN

    JimN Let the games begin!

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    The selling dealer got the Manufacturer's Certificate when they bought the car. It looks like a title. Are you speaking with the title clerk in the office? Does your title state it is a Prius Plug In?
     
    #13 JimN, Jul 16, 2014
  14. acadia2012

    acadia2012 Junior Member

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    I have not sent anything yet as I could not get what they were asking (manufacturer certificate). I have purchase order, window sticker, my monthly payment receipts for loan, car service records for last 15 months. Thanks Raj
     
    #14 acadia2012, Jul 17, 2014
  15. acadia2012

    acadia2012 Junior Member

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    I don't have the title as its with Toyota Finances, but I have Invoice/sale receipt/purchase receipt from the dealer. Yes I spoke to sales person and also the facility manager and they said they know nothing about it and I should consult IRS instead, Thanks Raj
     
    #15 acadia2012, Jul 17, 2014
  16. ELYKB

    ELYKB Junior Member

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    Try these contact, email them they should be able to direct your email to the appropriate department.

    Toyota Division Communications
    Michael Kroll (310) 468-4782 or [email protected]
    Moe Durand (714) 889-9908 or [email protected]
     
    #16 ELYKB, Jul 17, 2014
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  17. ELYKB

    ELYKB Junior Member

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    Is this enough
     
    #17 ELYKB, Jul 17, 2014
  18. JBumps

    JBumps Member

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    I would sit tight on getting any information from Toyota for the time being. None of that information is standard fare in claiming the PiP credit. Give me a couple hours today to reach out to a former colleague who is very well versed in these credits. I'm guessing that, with their volume, he's had a client experience a similar mis-step by the IRS. He might have the extension for an agent who understands the qualified vehicles and can correct your situation.

    That said, I would also refrain from sending them any money, as the end result will be your right to claim the credit and any unnecessary exchanging of funds should be avoided.
     
    #18 JBumps, Jul 17, 2014
  19. JBumps

    JBumps Member

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    After a quick conversation, my colleague and I agree - the best course of action for you would be to send a response letter.

    Assuming there are no un-knowns (i.e. the car had been previously titled etc...) the only thing that's happening as we speak is you are incurring interest charges, at a marginal rate. Given the likelihood of success with the letter, sending them a check to halt these interest charges is more likely to make resolution more difficult, not less.

    If you'd like, I'd be happy to draft the body of the letter and send it over - you'll just have to drop in your information.
     
    #19 JBumps, Jul 17, 2014
    Last edited: Jul 17, 2014
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  20. acadia2012

    acadia2012 Junior Member

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    Awesome! Thats seems to be an ideal choice , if you could guide me drafting the letter I would be really grateful to you my email: [email protected] , if u could PM me. Thank you Raj
     
    #20 acadia2012, Jul 17, 2014
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