Amended return rejected

[BluAussie]

March 2022 R1S pre-order, 12/21/2023 delivery. Filed using Turbotax software, amended 2022 1040-X, rev 2021 on 2/2/2024. Used Schedule 3, 2022. Form 8936, Rev January 2023. Mailed forms in and received full refund plus interest around April 20, 2024

Did you receive any confirmation email or text indicating they finally got around to approving your amended return or did the check just show up randomly?

Like others, my amended return status is past the 16 weeks and has the take action screen. I don't know if I should keep checking it regularly or just wait for communication it was finally reviewed.

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[Johnandkim2]

Checked the Where's my return a few times early on to see if it was received. Took 3 weeks to show up as received. Figured it was going to take 6 months to process then the check showed up in the mail 6 weeks later. At this point there's probably an issue with yours?

 

[Placer Paul]

Good morning,
Hope everyone is enjoying the Haloween organ music! I signed the binding agreement for the Rivian in 2022 and got delivery in 2023. I submitted an amended federal return, but it was rejected. Has anyone had success / failure in getting the 7500?

Thanks!!!

We likewise signed the contract in 2022, took delivery November 10, 2023. Filed our amended tax report for 2022 earlier this year (2024). Got a check from IRS just last week for the $7500 tax credit plus interest for total payment to us of $8009. I don't know if this particularly mattered to IRS, but our tax preparer emphasized to the IRS that our 2023 MSRP was our pre-March '22 price, so under the current maximum for qualifying for the tax credit.

 

[Placer Paul]

Did you receive any confirmation email or text indicating they finally got around to approving your amended return or did the check just show up randomly?

Like others, my amended return status is past the 16 weeks and has the take action screen. I don't know if I should keep checking it regularly or just wait for communication it was finally reviewed.

Our check appeared in the mail about a week ago.

 

[Cycliste]

Did you receive any confirmation email or text indicating they finally got around to approving your amended return or did the check just show up randomly?

Like others, my amended return status is past the 16 weeks and has the take action screen. I don't know if I should keep checking it regularly or just wait for communication it was finally reviewed.

Check showed up in the mail. I then rechecked "Where’s my amended return?" and the status showed my return was "adjusted"

 

[Jakelake]

Filed my amended return electronically using Form 8936, rev. January 2023. Received by IRS 11 September 2023. Still no check. Three calls in last 3 months and nothing other than " it's taking longer than usual " from the person on the phone. Almost 8 months. At least it has not been rejected !!

 

[RivianuserR1T]

I got a message that said “we’ve adjusted your account as requested. This adjustment didn’t change your tax or credits”

I e-filed through Turbo Tax month ago and followed the directions in this thread to a T. It doesn’t explicitly state it was rejected or give a reason. Anyone else experience this? I plan on calling Monday.

The only thing I can think is that we already received a tax credit for an R1T for that same tax year. Our tax liability is greater than the two credits.

Thanks!

 

[Yossarian]

My Rivian reservation dates to 2020, and I have the pre_IRA, August 2022 BPA. I just took delivery of my 2024 R1T last week, so now can file an amended 2022 tax return for the credit. I paid nearly double the $7,500 credit in taxes that year, so should be eligible for the full refund.

As I work through the process, it's become apparent that I should use the 2022 revision of Form 8936 to go with the 2022 1040X. I know that the entry for Line 3 of the 8936 (the in-service date) should be 15 Aug 2022. It also looks like Lines 4a and 4c should show the maximum tax credit value of $7,500. That much seems relatively straightforward.

What's not very clear to me is the need for Schedule A to Form 8936. It appears to be for vehicles used for commercial purposes, and so not required. If that's the case, it would seem that the only documents that need to be filed with the IRA are the 8936 and 1040X. Is that the case or am I missing something?

 

[SwaziCAR]

If that's the case, it would seem that the only documents that need to be filed with the IRA are the 8936 and 1040X. Is that the case or am I missing something?

For what it's worth (NOT A TAX PROFESSIONAL):

I prepared my amended return using TurboTax but submitted it on paper in November 2023, when the IRS wasn't accepting e-filing; the return was adjusted by the IRS on June 7, 2024, and I just received the check this week, so I must have done it not (totally) wrong.

My reading of the instructions for submitting an amended return was that one should include:

• the 1040X
• any new forms (such as the 8936)
• any forms you revised

So, I submitted:

• the 1040X
• the 8936
• Schedule 3 (because I didn't submit one originally)
• revised 1040 (which includes the credit that shows up on Schedule 3 and the resulting change in my total tax)

I took the non-professional step of writing "New" in the upper corner of the first three and "Revised" in the upper corner of the last.

Good luck!

 

[kcko11]

My Rivian reservation dates to 2020, and I have the pre_IRA, August 2022 BPA. I just took delivery of my 2024 R1T last week, so now can file an amended 2022 tax return for the credit. I paid nearly double the $7,500 credit in taxes that year, so should be eligible for the full refund.

As I work through the process, it's become apparent that I should use the 2022 revision of Form 8936 to go with the 2022 1040X. I know that the entry for Line 3 of the 8936 (the in-service date) should be 15 Aug 2022. It also looks like Lines 4a and 4c should show the maximum tax credit value of $7,500. That much seems relatively straightforward.

What's not very clear to me is the need for Schedule A to Form 8936. It appears to be for vehicles used for commercial purposes, and so not required. If that's the case, it would seem that the only documents that need to be filed with the IRA are the 8936 and 1040X. Is that the case or am I missing something?

Did you get the full $7500? My initial amendment got rejected. I appealed and after discussing with a reviewer in the appeals department, he said because my model is 2024 year, I only receive half. I figured its better than the $0 from before and I accepted. Was wondering if you got the full or half?

 

[CharonPDX]

Did you get the full $7500? My initial amendment got rejected. I appealed and after discussing with a reviewer in the appeals department, he said because my model is 2024 year, I only receive half. I figured its better than the $0 from before and I accepted. Was wondering if you got the full or half?

That makes no sense, though.

Under the pre-IRA binding agreement, you get the full 2022 tax treatment. You're amending your 2022 tax return, under 2022 rules. If you were claiming it on your 2024 tax return, sure, you follow 2024 rules. But the whole point is that you're just "applying 2022 rules to a 2022 return." There was no "halvesies" in 2022.

 

[kcko11]

That makes no sense, though.

Under the pre-IRA binding agreement, you get the full 2022 tax treatment. You're amending your 2022 tax return, under 2022 rules. If you were claiming it on your 2024 tax return, sure, you follow 2024 rules. But the whole point is that you're just "applying 2022 rules to a 2022 return." There was no "halvesies" in 2022.

The reviewer applied the 2022 rules but the only guide as to how much a model year gets back is specific to each year and unfortunately, they didn't write $7500 for 2024 models and only half for those model years. That's why so many people only see 2022 and 2023 as options when they sent the amendment. Unless someone has a rule book quote somewhere saying 2024 can have the full $7500 treatment, I'll have to accept the half for now.

 

[UnsungZero_OldTimeAdMan]

The $3750 appeal judgment is nonsense because that is max allowance for R1s under IRA. Treasury determined (around 4/18/23) R1 battery packs do not contain enough domestically sourced materials to qualify for the full 7500, hence the resulting 50%.

Binding agreement exempts you from rules of IRA, which became law on 8/16/2022, because your effective (and back-dated) in-service date is 8/15/2022. On this day, 15th, IRA was not yet law. Therefore, no income cap, no purchase price cap, no battery sourcing requirements and upto $7500 credit (if you had at least that much in total tax liability for ‘22).

https://rivian.com/support/article/...ev-tax-credit-using-a-binding-order-agreement

IRS’ own guidance on binding agreements, passed on by Rivian above, is very clear that you could amend your ‘22 tax return even if you “take delivery in 2023 or later”.

Willing to bet your use of rev. 2023 Form 8936 confused IRS personnel and set them off on wrong line of thought. This version of 8936 was made for sake of IRA.

IRS site still has rev. 2022. A short scroll and a click away. There aren’t any declarations saying older forms are forbidden or invalid. You’re amending taxes for ‘22. It’s logical to use forms relevant to ‘22, not after.

https://www.irs.gov/prior-year-forms-and-instructions

 

[Yossarian]

Did you get the full $7500? My initial amendment got rejected. I appealed and after discussing with a reviewer in the appeals department, he said because my model is 2024 year, I only receive half. I figured its better than the $0 from before and I accepted. Was wondering if you got the full or half?

My amended return was filed 24 June and doesn't appear to be in the IRS system yet. It was a paper return, and the IRS website says it will take 4 - 8 weeks for entry into their system. I'm hopeful that in a few months, I will get the credit plus the appropriate accrued interest.

I can understand an IRS agent initially rejecting your amended return as many appear to be unfamiliar with the governing regulations. I don't understand how the IRS could determine you were eligible for a 50% credit considering that your amended return was for a vehicle "placed in service" in 2022. The 50% credit was not in effect then. Further, in order to be eligible for the 50% credit, something that came into force when the Inflation Reduction Act was signed into law in August of 2022, your purchase price would need be under the $80k IRA threshold. And if it was the case that your purchase qualified for the 50% credit, you should have been eligible for the point of sale application of the credit and not have needed to file an amended return.

I'm not an accountant or attorney, so don't take what I've written as gospel and consult a tax expert to verify everything. That said, assuming that your deposit was placed before the Inflation Reduction Act became effective on 15 August 2022, and you signed a binding purchase agreement prior to that date, your purchase is governed by the regulations in force then. At that time, the credit was $7,500, with no purchase threshold, and no income cap restrictions. That's why you were required to file an amended 2022 return.

If I'm correct [see the disclaimer in the para above], the IRS owes you an additional $3.750 plus interest. I can't stress enough that you should talk to a tax expert before doing anything further however.

 

[kcko11]

My amended return was filed 24 June and doesn't appear to be in the IRS system yet. It was a paper return, and the IRS website says it will take 4 - 8 weeks for entry into their system. I'm hopeful that in a few months, I will get the credit plus the appropriate accrued interest.

I can understand an IRS agent initially rejecting your amended return as many appear to be unfamiliar with the governing regulations. I don't understand how the IRS could determine you were eligible for a 50% credit considering that your amended return was for a vehicle "placed in service" in 2022. The 50% credit was not in effect then. Further, in order to be eligible for the 50% credit, something that came into force when the Inflation Reduction Act was signed into law in August of 2022, your purchase price would need be under the $80k IRA threshold. And if it was the case that your purchase qualified for the 50% credit, you should have been eligible for the point of sale application of the credit and not have needed to file an amended return.

I'm not an accountant or attorney, so don't take what I've written as gospel and consult a tax expert to verify everything. That said, assuming that your deposit was placed before the Inflation Reduction Act became effective on 15 August 2022, and you signed a binding purchase agreement prior to that date, your purchase is governed by the regulations in force then. At that time, the credit was $7,500, with no purchase threshold, and no income cap restrictions. That's why you were required to file an amended 2022 return.

If I'm correct [see the disclaimer in the para above], the IRS owes you an additional $3.750 plus interest. I can't stress enough that you should talk to a tax expert before doing anything further however.

I asked the appeals officer this question, this was his reply. Unless someone else can have a better rebuttal, I’m stuck with half…which again, is better than nothing…:
As I have stated. The 2024 model that you purchased only qualified for $3,750. This is a 2 step process in making the determination.



First step was what determining if you were eligible for the credit. What you are citing was also your initial argument that you qualified for the credit that was NOT dependent on the MAGI. This was what the IRS originally determined when the credit was disallowed. Based on your documentation and my research, I had agreed with you that the credit should be allowed. As the key factor was the date the purchase was made.



The next step would be to determine the amount based on the year and model of the vehicle.

• 2024 Rivan R1S available credit is $3,750 due to phase out of the credit from $7,500.

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