Dealers and sellers can use these frequently asked questions to help guide them through the return and cancellation process in the IRS Energy Credits Online (ECO) application. Dealers and sellers are strongly encouraged to sign-up to receive updates from IRS e-News subscriptions. Select "e-news for business" and sign-up for e-news for clean vehicle industry. Q1. When I log into IRS Energy Credits Online and view previously submitted reports, I do not see the "modify" function. (added Nov. 8, 2024) A. If you are not seeing the “Modify” function, please try one of the following: Clear your cache (from your web browser settings) Delete your cookies (from your web browser settings) Open the IRS ECO tool in an incognito browser. Try using a different browser. (i.e. Chrome vs. Microsoft Edge) Q2. We sold a vehicle that was returned earlier in the year before the return function was available. Can I still process the return? (added Nov. 8, 2024) A. Yes, for a limited time you will be able to go back as far as January 1, 2024, and input the return. Q3. What is the difference between void, cancel, and return? (added Nov. 8, 2024) A. The VOID option should be used when the vehicle was not placed in service AND you are still within the 48 hours of the original submission. The CANCEL option should be used when a time of sale report should not have been issued (i.e. a lease scenario or, the vehicle was NOT placed in service), and you are outside of the 48-hour void period. The RETURN option should be used when the buyer took possession of the vehicle. Q4. Once a time of sale report is cancelled for a vehicle that was never placed in service, how long do I need to wait to submit a new time of sale report for the same VIN? (updated Dec. 19, 2024) A. Dealers should anticipate the VIN for an eligible vehicle that was not placed in service, to be available for submission on a new time of sale report after the IRS has completed a review and concurs with the attestations submitted with the cancellation. Once this has occurred, the report status will be updated to Return Processed and VIN Reinstated. If you have issues submitting the time of sale report, follow the steps outlined in Q1 above. If your issue persists, please send the IRS a secure message. See Publication 6025, Secure Messaging: Contact the IRS through Secure Messaging User Guide PDF. As part of the review, you may be contacted by the IRS for additional documentation. If you previously submitted a second time of sale report for the same vehicle you are attempting to cancel and that second time of sale report is pending review, please notate this in the Reason for Input explanation box when cancelling the first time of sale report. Advance payments for new time of sale report submissions will only be paid out after the dealer first repays the IRS any advance payment for a returned or cancelled time of sale report. Q5. When can I submit a new time of sale report for a sale that was cancelled and the vehicle was not placed in service, and the new sale occurred more than 3 calendar days from today’s date? (updated Nov. 21, 2024) A. In early December 2024, for a limited time you will be able to submit time of sale reports for any calendar year 2024 transactions. We strongly encourage you to promptly submit any such time of sale reports by early December as they will generally take additional time to process. Dealers should anticipate the VIN for an eligible vehicle that was not placed in service, to be available for submission on a new time of sale report after the IRS has completed a review and concurs with the attestations submitted with the cancellation. If you have issues submitting the time of sale report, follow the steps outlined in Q1 above. If your issue persists, please send the IRS a secure message. See Publication 6025, Secure Messaging: Contact the IRS through Secure Messaging User Guide PDF. Q6. I accidentally submitted a time of sale report for a leased vehicle. How can I correct this? (added Nov. 8, 2024) A. If you have submitted a time of sale report for a leased vehicle, you will need to CANCEL your time of sale report. Please indicate the vehicle was LEASED and the buyer is the lessee, not the lessor, as the reason for cancellation in the Reason for Input explanation box. For more information see Publication 5867-B, Clean Vehicle Return and Cancellation User Guide PDF. Q7. How and when do I need to repay an advance payment for a returned vehicle or cancelled time of sale report? Is the payment automatically debited? (updated Dec. 19, 2024) A. The IRS will electronically send an invoice to the dealer/seller to make a payment using Pay.gov. The invoice will be sent to the email address associated with your Advance Payment registration. Dealers should promptly pay the invoice. Payment will not be automatically debited for these initial invoices sent in December. On the Submitted Time-of-sale Reports screen, the Return Payment Info column will reflect the invoice number. Q8. Is the VIN eligible for another clean vehicle credit after a time of sale report is returned or cancelled, if the vehicle was placed in service? (added Nov. 8, 2024) A. In the case of a new clean vehicle that was placed in service, the VIN is no longer eligible for a new clean vehicle credit for a subsequent buyer. The vehicle may be eligible in the future for a previously owned clean vehicle credit once it meets the eligibility requirements. For more information see Topic D, question 2. In the case of a previously-owned clean vehicle that was placed in service, the VIN is no longer eligible for a previously-owned clean vehicle credit for a subsequent buyer. Q9. What happens if a sale falls through after a time of sale report has been submitted? (added Nov. 8, 2024) A. If the vehicle was NOT placed in service and you are within 48-hours of original submission, you will need to VOID the time of sale report. If the vehicle was NOT placed in service and you are outside of the 48-hour void period, you will need to CANCEL the time of sale report. If the vehicle was placed in service, you will need to RETURN the time of sale report. Q10. When can a buyer make another clean vehicle credit transfer after a dealer indicates a VIN has been returned or the time of sale report was cancelled? (added Nov. 8, 2024) A. Per calendar year, each purchaser is limited to transferring two clean vehicle credits, including at most one transfer for a previously owned clean vehicle. Once a time of sale report is voided or the vehicle has been indicated to be returned (or the sale was first cancelled), the buyer should be eligible for a new credit transfer immediately. Q11. What do I enter on the Reason for Input box when I am submitting a return? (added Nov. 8, 2024) A. Please describe the reason you are cancelling or returning the vehicle. Note: You have 500 characters to input your description. Q12. If the cancellation for a vehicle that was NOT placed in service is rejected, will I have another opportunity to submit the cancellation? (added Nov. 8, 2024) A. No, the decision is final. If you have questions, please login to IRS Energy Credits Online and send the IRS a secure message. See Publication 6025, Secure Messaging: Contact the IRS through Secure Messaging User Guide PDF. Q13. What can I provide the buyer during the return process? (updated Dec. 19, 2024) A. Once the return or cancellation has been entered, select the Download option and provide the updated time of sale report to the buyer. The return confirmation can be found on page 2 of time of sale report. Q14. What does placed-in-service mean? (added Nov. 8, 2024) A. The buyer has taken possession of the vehicle. Q15. I discovered an error on the time of sale report, is there a process to correct the report? (added Nov. 8, 2024) A. In the event you determine a scrivener's error occurred on the time of sale report, you can void the time of sale report within 48 hours of submission. In the event you determine a scrivener’s error occurred outside of the 48-hour void period, additional instructions are forthcoming. Please sign up to receive updates via IRS e-News subscriptions. Q16. Can I cancel a time of sale report and change the credit election from No to Yes? (added Nov. 8, 2024) A. A submitted time of sale report that indicates the buyer did not elect to transfer the credit should not be cancelled to input a second time of sale report that attempts to request an advance payment. If you believe extenuating circumstances exist regarding whether the buyer timely elected to transfer the credit, please login to IRS ECO and send the IRS a secure message. See Publication 6025, Secure Messaging: Contact the IRS through Secure Messaging User Guide PDF. Each inquiry will be handled on a case-by-case basis; however, to help facilitate the review, you may provide documents from the car jacket and any documents pertaining to the clean vehicle credit. See Topic H, question 13 or dealer registration FAQs, question 36. Q17. If I run into difficulty at any point in the return process, who should I contact? (added Nov. 25, 2024) A. Please login to IRS ECO and send the IRS a secure message. See Publication 6025, Secure Messaging: Contact the IRS through Secure Messaging User Guide PDF. Q18. Does a new clean vehicle remain eligible for a section 30D credit if it is returned more than 30 days after it was placed in service? (added Nov. 25, 2024) A. No. In the case of a new clean vehicle that is returned more than 30 days after it was placed in service, the vehicle, once returned, is not available for original use by another taxpayer and, therefore, is not eligible for a section 30D credit. Q19. Does a previously-owned clean vehicle remain eligible for a section 25E credit if it is returned more than 30 days after it was placed in service? (added Nov. 25, 2024) A. No. In the case of a previously-owned clean vehicle that is returned more than 30 days after it was placed in service, the vehicle, once returned, is not eligible for the section 25E credit upon a subsequent sale pursuant to the first transfer rule described in final section 25E regulations. Q20. Can a buyer who returns a vehicle more than 30 days after the vehicle was placed in service claim a clean vehicle credit? (added Nov. 25, 2024) A. Yes, provided the buyer meets all applicable requirements. If the buyer who returned the vehicle elected to transfer the credit at the time of purchase, the buyer will receive the financial benefit of the credit election provided all requirements are met. For example, the buyer must meet income requirements and file a federal income tax return with an attached Form 8936 and Form 8936, Schedule A to reconcile the credit election. Q21. If a buyer returns a vehicle more than 30 days after the date the vehicle was placed in service, should the seller modify the seller report? (added Nov. 25, 2024) A. No. In the case of a return occurring more than 30 days after the date on which the taxpayer places the vehicle in service, the seller report should not be updated because the taxpayer generally will be eligible for the clean vehicle credit provided all other requirements are met.
