
IRS to Reopen Time of Sale Reporting for 2024 Transactions
What’s new: NADA is pleased to report the IRS is allowing time of sale reports to be submitted for qualifying clean vehicle credit transactions that occurred in 2024. The IRS has informed NADA that the portal is currently open for testing, and it expects to officially roll out the update on Wednesday, March 26. The portal will allow both traditional 30D and advanced payment transactions to be processed. It is unclear how long the functionality will remain open but, according to the IRS, dealers can begin using the portal now. NADA will provide additional details when they become available.
Why it matters: In some instances, time of sale reports for qualifying clean vehicle credit transactions were not filed in 2024. These situations involved both (1) advance payment transactions where the dealer applied the credit at the point of sale and (2) transactions where customers chose to claim the credit when they file their taxes. In both situations, customers are facing issues filing their tax returns because the return does not match a VIN in the IRS’s system. Absent relief, dealers would face significant financial losses, and customers would be unable to claim clean vehicle credits.
Go deeper: NADA advocated aggressively for the IRS to remedy these issues. NADA sent a letter to leadership at the U.S. Department of Treasury and the IRS requesting timely relief for dealers. Members of Congress are also aware of these issues based on NADA advocacy and ongoing communication from constituents.