Tags: consumers | electric | car | tax | credits

Consumers Got Millions in Questionable Electric-Car Tax Credits

Consumers Got Millions in Questionable Electric-Car Tax Credits
(Madmaxer/Dreamstime)

Friday, 04 October 2019 09:36 AM

Thousands of auto buyers may have improperly claimed more than $70 million in tax credits for purchases of new plug-in electric vehicles using ineligible cars and trucks, a U.S. Treasury Department watchdog said.

The questionable claims were found in 16,510 individual tax returns during a five-year period through the 2018 processing year, according to an audit by the Treasury Inspector General for Tax Administration. That compares with more than $1.4 billion paid in credits to almost 240,000 taxpayers over the same period that were reviewed as part of the audit.

Details about how taxpayers improperly claimed the credits were mostly redacted, though the audit found that the Internal Revenue Service lacks an effective process to prevent improper claims under the program, which awards as much as $7,500 for electric-car buyers.

“Although the IRS has taken steps to address some of TIGTA’s previous recommendations to improve the identification and prevention of erroneous credit claims, many of the deficiencies previously identified still exist,” according to the audit.

The Treasury watchdog made four recommendations to the IRS, which agreed with the findings. The IRS plans to start a program to recover erroneous credits, among other steps, according to a summary of the audit.

© Copyright 2019 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Personal-Finance
Thousands of auto buyers may have improperly claimed more than $70 million in tax credits for purchases of new plug-in electric vehicles using ineligible cars and trucks, a U.S. Treasury Department watchdog said.
consumers, electric, car, tax, credits
200
2019-36-04
Friday, 04 October 2019 09:36 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved