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Trouble with Fed Tax credit

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  • Trouble with Fed Tax credit

    The IRS decided to disallow the personal portion of my tax credit for my 2009 GX. They sent my refund reduced by the credit disallowed.

    They sent me a letter stating something about "some credits need to be removed from the Alternative Minimum Tax calculation and mine was either not applied correctly or not at all" - I don't really understand the statement.

    However, I called them as the form letter said I could if I did not agree - that was interesting. The first lady I talked to could pull up my records and see my return. But really could not explain the rules or correct the problem. She said sometimes their computer will either read something wrong or just kick something out based on what it thought should have been submitted. Maybe I shouldn't have submitted the AMT work sheet, or maybe it had a zero that triggered the computer to kick it out....

    So, she transferred me to another lady - I think in the law side of things. Of course, the second lady could not pull up my records and therefore could not resolve the problem either. But, I gave her the figures off my AMT form - she agreed I am not subject to the AMT based on the numbers I provided.

    Then I told her I thought the Alternative Motor Vehicle credit was not limited by the AMT this year - she agreed and said it was implemented as part of the stimulas bill. She suggested that I look up ARRA (stimulas information) send my IRS letter back in, asking for a review and explain why I should get the credit.

    What I found was the tax credit is spelled out in IRS code - Title 26 section 30B - but the part that says it is NOT affected by AMT is in the stimulas bill. My research there actually led me to a site on the IRS site that said as much.

    So, I wrote a letter, provided supporting documentation of my position and am now waiting for a review decision.

    Bottom line moral of the story is: The first reduction of my refund was not even reviewed by a person... Don't just roll over and give up if your tax credit is declined the first time...

    I will let you know if/when I get the rest of my money.

  • #2
    Re: Trouble with Fed Tax credit

    Originally posted by Larryect View Post
    What I found was the tax credit is spelled out in IRS code - Title 26 section 30B - but the part that says it is NOT affected by AMT is in the stimulas bill. My research there actually led me to a site on the IRS site that said as much.
    Great tip.
    Can you post the URL for the IRS web site area which states the AMT no longer is factored into alt fuel vehicle credits? This will be helpful for others, to be sure!

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    • #3
      Re: Trouble with Fed Tax credit

      thanks for the info

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      • #4
        Re: Trouble with Fed Tax credit

        Can you post the URL for the IRS web site area which states the AMT no longer is factored into alt fuel vehicle credits? This will be helpful for others, to be sure!
        Sure. Here is the link. The reference to the Alternative Motor Vehicle credit is near the bottom of the page.


        http://www.irs.gov/newsroom/article/...206875,00.html

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        • #5
          Re: Trouble with Fed Tax credit

          Well - GOOD NEWS.

          Have not recieved a letter yet. But, the additional tax return money showed up in my bank account (Direct deposit). So it looks like the IRS agreed with me...

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