The IRS requires those auto dealers who sell electric vehicles (“EV”) to file a seller’s report with the IRS. Did you know that this seller’s report needs to be reported on a timely basis? Are you shocked that the IRS made it confusing for the dealers to know exactly what they are supposed to be doing?
It has been interesting over the past several months figuring out what needs to be done with a seller’s report. There is a process for how the 2023 EV sales need to be reported. (But beware, there is a different process for how the 2024 and beyond EV sales need to be reported.)
Here are some highlights of the 2023 process for reporting EV sales to the IRS:
- The due date of the seller’s report had been January 15, 2024, but now it has been extended to January 31, 2024.
- Dealers can use Form 15400, Clean Vehicle Report, for each EV sold.
- The preferred format of the summary is Excel, containing all the necessary data which is laid out in Form 15400. The choice of Excel format is interesting. How can the dealer sign this, which is a requirement?
- The report can be submitted via email to [email protected]. I am interested in this email address, because who wants to send social security numbers of your clients through an email address that you don’t know is secure?
The IRS has simplified the process over the past few months, but the delayed guidance has created sense of urgency, and ultimately, an extension to submit the information through January 31, 2024. Even if the Form 15400 is not used, please refer to it to understand the information that is required to be submitted. Please note that the vehicles that qualify for the Commercial Clean Vehicle Credit (45W) do not need to be submitted, which includes leased vehicles.
The process for the seller’s report for years 2024 and beyond can be found on Our Thoughts On under a different article written by our team.
For more information on these credits, please refer to our EV Tax Credit Guide which explains each credit available. If further assistance is needed, please reach out to Steve Barber or Brett Cubellis from our SD Auto Advisor group.
About Schneider Downs Automotive Industry Group
The Schneider Downs Automotive industry group serves dealers of all sizes, from single-point locations to mega-dealerships. Our members cross departments and meet regularly to ensure efficiencies in the services provided to our clients and discuss issues, regulations and trends affecting the automotive industry.
To learn more, visit our Automotive Industry Group page.
