So, I called Hyundai about the IRS letter about the EV Tax Credit

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BlueKonaEV said:
So, I called Hyundai Customer support a couple of days ago regarding the IRS letter that everyone in the USA whe claimed the $7500 tax credit on a 2019 Kona Electric. They called me back this morning and they told me is that Corperate doesn't have any such document and they referred me to Hyundai Motor Finance.. This is a joke.. Why would have HMF that document? If we have to pay back the $7500 tax credit it's time for a Lawsuit against Hyundai. They can't just claim that the vehicle qualifies for the tax credit and then wash their hands when it comes to help the customer proof that the vehicle does qualify. I really love the car but the lack of support I'm getting from Corporate is a joke. Can't they have someone call the IRS to clarify with them what they need from Hyundai to resolve this issue? Obviousely, this seems to be too much to ask.. As soon as I get my new battery, it's Tesla time.. Not because of the car.. Not because of the battery issue.. Not because of my local Hyundai dealer which is wonderful but because of the lack of support I'm getting from Corporate..
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I spoke to someone at the IRS and she said these letters were just because people have been trying to claim the credit in used EVs.



Sent from my iPhone using Inside EVs
 
HepKona said:
I spoke to someone at the IRS and she said these letters were just because people have been trying to claim the credit in used EVs.



Sent from my iPhone using Inside EVs
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Interesting.

It would also be easy for someone to try and fraudulently claim the credit by using VIN numbers from a dealer website.
 
BlueKonaEV said:
The IRS is asking for a Certification from the Domestic Distributor (Hyundai USA). Something got messed up as this NEVER happened to Tesla owners when they claimed their tax credit (when Tesla still had it). The IRS's system does NOT recognize a Hyundai Kona Electric's VIN number as a valid vin of an eligible EV. The IRS system DID always recognize a Tesla's VIN when someone claimed them on their taxes. So, something got messed up with the Kona and this is between Hyundai and the IRS. It doesn't take a lot of effort if someone from Hyundai Corporate make a phone call with the IRS to see what went wrong. Maybe it's something that Hyundai didn't supply.. Maybe it's a glitch in the IRS's system. Who knows.. All that I'm asking for is that Hyundai gets in contact with the IRS to see what it is that they need from Kona Electric buyers.
The goal should be to get Hyundai Kona Electric VIN numbers in the system of the IRS so that the VINs are recognized by the IRS. This is something that has to be worked out between Hyundai and the IRS.. It may be as simple as a phone call by someone in Corporate.
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I also got a letter from the IRS asking me to provide additional documentation. Still waiting to hear back.
 
I don't want to jinx myself, but I haven't received the letter yet. Car was purchased in July 2019 and my 2019 taxes were filed electronically (TurboTax) in March, 2020.
 
I too got the IRS "We're auditing your return" letter re the Plug-In Electric Vehicle Credit, dated Nov 30 2020. I faxed (yep, no email or attachments allowed) copies of my Bill of Sale, VIN Nameplate, picture of my Kona plugged into my charger, and for good measure, a screen capture of the IRS website listing the Kona EV as qualifying for the credit. Got a "Received your Response" letter dated Jan 11, 2021, and just received the "We are closing your examination with no changes" letter dated March 29, 2011. YMMV.
 
Robbert said:
I was part of the original thread. The fact that no part of Hyundai is aware of this certification form is bizarre, but you never end up talking to the right people anyway when you call a phone bank. And it depends on the rep you talk to how far they're willing to go up the chain for you. Via another person who had a similar issue on Facebook, I was able to obtain these certification forms. I attached them in the original thread (which is linked earlier).
Note that this is not likely a Hyundai screw-up, but rather an IRS screw-up. Also note that I never sent in that document (I got it after I already sent my documentation; bill of sale, etc. to the IRS). I received a letter from the IRS earlier this week saying case-closed.
The IRS was probably using the wrong database to verify the VINs when they did their screening, and somehow our cars weren't in there, or weren't qualified as EV's. So the "automatic" letters went out.
I initially also spoke directly with an IRS agent about this, and he was confused as why those letters went out. Without admitting it was their fault, he said to just send them what I had and it should be ok.
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This is great news! 1st time hearing anyone with some success on this stupid audit. I'm still waiting a response from a 16 page fax sent a month ago. My response did include the 9 page IRS-Hyundai correspondence that Robbert posted.
 
BlueKonaEV said:
So, I called Hyundai Customer support a couple of days ago regarding the IRS letter that everyone in the USA whe claimed the $7500 tax credit on a 2019 Kona Electric. They called me back this morning and they told me is that Corperate doesn't have any such document and they referred me to Hyundai Motor Finance.. This is a joke.. Why would have HMF that document? If we have to pay back the $7500 tax credit it's time for a Lawsuit against Hyundai. They can't just claim that the vehicle qualifies for the tax credit and then wash their hands when it comes to help the customer proof that the vehicle does qualify. I really love the car but the lack of support I'm getting from Corporate is a joke. Can't they have someone call the IRS to clarify with them what they need from Hyundai to resolve this issue? Obviousely, this seems to be too much to ask.. As soon as I get my new battery, it's Tesla time.. Not because of the car.. Not because of the battery issue.. Not because of my local Hyundai dealer which is wonderful but because of the lack of support I'm getting from Corporate..
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When I bought my car in California there was a $7500 Federal Tax Rebate. The Dealer reduced the Price of the car by $7500 and they took the rebate. Knowing how these Finance Guys also called the TO for Take Over Guys are so sleazy, I have my doubts if my car was ever reduced by the $7500. I was told I needed a Forensic Accountant to analyze the documents; A Standard CPA wouldn't be sufficient!
 
Ed C said:
If that is the case, then ALL Kona EV owners will be affected. It will be funny to see what Hyundai will do then when every Kona EV owner demand them to sort it out with the IRS.
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Umm, yeah, we have a 2019 Kona EV and have been trying to get the IRS off our backs for a few weeks now. So glad I found this forum and now know that we’re not being singled out. Is there any summary of what’s the state-of-the-art response as of 5/23/21? Has anyone heard back from the IRS with a positive response? Or are we just going to send letters back and forth indefinitely until they seize our 2020 refund?
 
Don't quite understand why IRS would ever initiate this type of letter. Hyundai has not come close to the limit for qualifying for the tax credit. I would analysis the VIN for where it is in the sequence and compare it with others. This kind of response doesn't make sense.

IRS Phaseout tracker.webp
 
You'll have to search the forum but I think you'll find some people who resolved the matter by calling the IRS and when the IRS rep looked it up they were told it was taken care of. Others submitted documentary proof that it's for an EV. I think it had something to do with the VIN's not being associated with EV's - maybe they were just listed as "Kona" or something like that.
 
GeorgeS said:
Don't quite understand why IRS would ever initiate this type of letter. Hyundai has not come close to the limit for qualifying for the tax credit. I would analysis the VIN for where it is in the sequence and compare it with others. This kind of response doesn't make sense.

View attachment 12053
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Yes, and the IRS website lists each model year of the Kona Electric as eligible for $7,500. That's not the issue here at all.

As far as I can tell, some IRS system doesn't recognize the VIN of a Kona Electric as being eligible. I'm not sure if that's the IRS's fault or Hyundai's (or someone else's, like DOE, which is responsible for helping to certify car model as eligible).

Honestly, that doesn't bug me as much as the degree of difficulty it seems some people are having in proving that their vehicle is eligible. IRS is asking for things that don't exist, rejecting legitimate documentation, and Hyundai USA could care less.

IMHO Hyundai -- which presumably has experts and lawyers who could help -- needs to step up and help buyers. Hyundai should figure out the problem and get buyers what they need to effectively fight this.

In the mean time, I think owners who are going through this should contact an outlet like InsideEVs or Electrek, show them the posts here and elsewhere and try to get them to report on it. That might be the only way to get Hyundai's attention.

(I personally have a 2020, bought it last year and filed for the credit, so I'm assuming there's a good chance I'll have to deal with this soon.)
 
I reviewed my Kona EV Lease Contract with my CPA, a very large National Firm. The $7500 Federal Rebate was applied by my Dealer and the Price WAS reduced by $7500. In re my previous post on April 10th where I Stated "Knowing how these Finance Guys also called the TO for Take Over Guys are so sleazy, I have my doubts if my car was ever reduced by the $7500". Well, my accountant said it was. But what I was referring to when I made the Original Post and My Accountant confirmed is we don't know if the dealer Jacked the Price up by $7500 or some other amount before reducing the price by $7500. But, Judging by the Window Sticker Price, they didn't. Maybe I was being a little harsh on them after I found out they added a $1,000 Alarm System which is Totally Unnecessary because the car can be disabled by BlueTooth if stolen. Yes, I made them take it off but only when I got up and started to walk out did they relent. "I Told You I Don't Want that TRU-COAT" Customer to William H. May in the Movie Fargo, Remember? It's my Favorite Scene in the movie.
 
BlueKonaEV said:
The IRS is asking for a Certification from the Domestic Distributor (Hyundai USA). Something got messed up as this NEVER happened to Tesla owners when they claimed their tax credit (when Tesla still had it). The IRS's system does NOT recognize a Hyundai Kona Electric's VIN number as a valid vin of an eligible EV. The IRS system DID always recognize a Tesla's VIN when someone claimed them on their taxes. So, something got messed up with the Kona and this is between Hyundai and the IRS. It doesn't take a lot of effort if someone from Hyundai Corporate make a phone call with the IRS to see what went wrong. Maybe it's something that Hyundai didn't supply.. Maybe it's a glitch in the IRS's system. Who knows.. All that I'm asking for is that Hyundai gets in contact with the IRS to see what it is that they need from Kona Electric buyers.
The goal should be to get Hyundai Kona Electric VIN numbers in the system of the IRS so that the VINs are recognized by the IRS. This is something that has to be worked out between Hyundai and the IRS.. It may be as simple as a phone call by someone in Corporate.
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Hyundai received the federal rebates for leased vehicles. My vehicle is leased. I have not received a letter. One would think that if there were an issue with VIN numbers, that Hyundai Corporate or local dealer would be aware as it would affect the leased vehicles.
 
Dag Lindquist said:
This is great news! 1st time hearing anyone with some success on this stupid audit. I'm still waiting a response from a 16 page fax sent a month ago. My response did include the 9 page IRS-Hyundai correspondence that Robbert posted.
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Follow up that on October 12th, the IRS finally "closed the examination (of my tax return) with no changes". So, guess I'm not a lying tax dodger after all!
 
Sorry, I didn't follow up.. After a few months, I got the response that the case was closed with not changes.. All is good..
 
FloridaSun said:
So, I called Hyundai Customer support a couple of days ago regarding the IRS letter that everyone in the USA whe claimed the $7500 tax credit on a 2019 Kona Electric. They called me back this morning and they told me is that Corporate doesn't have any such document and they referred me to Hyundai Motor Finance.. This is a joke.. Why would have HMF that document? If we have to pay back the $7500 tax credit it's time for a Lawsuit against Hyundai. They can't just claim that the vehicle qualifies for the tax credit and then wash their hands when it comes to help the customer proof that the vehicle does qualify. I really love the car but the lack of support I'm getting from Corporate is a joke. Can't they have someone call the IRS to clarify with them what they need from Hyundai to resolve this issue? Obviousely, this seems to be too much to ask.. As soon as I get my new battery, it's Tesla time.. Not because of the car.. Not because of the battery issue.. Not because of my local Hyundai dealer which is wonderful but because of the lack of support I'm getting from Corporate..
Click to expand...
When you bought (or Leased) your Car, the Dealer lowers the Sticker Price by the amount of the Rebate. The Dealers Claims the Rebate, not you. At least this is what I was told by two different dealers when I leased my 2020 Kona EV Ultimate and the same thing when I leased my 2021 Kona EV Ultimate, and my Contract stated both times that the car price was reduced by the amount of the rebates. I never heard of this IRS Letter you are talking about. In fact, my 2021 had a total of "$12,250 in Rebates and Non Cash Credits" or $4750 more than the $7500 Federal Tax Credit. When I asked why the Dealer said Hyundai was having trouble selling the cars so they kicked in another rebate on top of the Federal Rebate. I didn't argue with them. Because of the additional Hyundai Rebate, my Lease payment dropped from $518 per month on a 4-year lease to $375 per month on a 3-year lease. I didn't argue with them on this either.
 
BaylorBob said:
When you bought (or Leased) your Car, the Dealer lowers the Sticker Price by the amount of the Rebate. The Dealers Claims the Rebate, not you. At least this is what I was told by two different dealers when I leased my 2020 Kona EV Ultimate and the same thing when I leased my 2021 Kona EV Ultimate, and my Contract stated both times that the car price was reduced by the amount of the rebates. I never heard of this IRS Letter you are talking about. In fact, my 2021 had a total of "$12,250 in Rebates and Non Cash Credits" or $4750 more than the $7500 Federal Tax Credit. When I asked why the Dealer said Hyundai was having trouble selling the cars so they kicked in another rebate on top of the Federal Rebate. I didn't argue with them. Because of the additional Hyundai Rebate, my Lease payment dropped from $518 per month on a 4-year lease to $375 per month on a 3-year lease. I didn't argue with them on this either.
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There is confusion between credits and rebates. The Fed offers a credit against tax liability, states or dealers extend rebates. The process for Federal tax credit is different for leased versus purchased vehicles. The dealer gets the credit on leased vehicle. Buyers apply for credit against taxes owned. / apparently
 
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