Tax deduction appeal for hybrid car denied - how to appeal IRS rejection?
I bought a hybrid car back in 2023 and was trying to claim it as a tax deduction. The tax software I was using calculated it would be worth around $3,500 in deductions (which would be the biggest deduction I've ever received!), but when I tried to file electronically, it got rejected. The IRS claimed my car's VIN didn't match their records. I triple checked what I entered (I have dyslexia so I was super careful) and everything was correct. I tried submitting again but got the same rejection. So I called the IRS, and the person I spoke with told me to first contact the dealership, but if that didn't work, I should mail in my temporary registration from when I first purchased the car to prove the year. I did exactly that, and a few months later, I received a notice saying my claim was denied (they didn't question anything else on my return though, so at least no audit). Now I have about 2 months left to appeal this decision. What I'm wondering is: How do I request an appeal without going to court (the amount is too small to justify hiring a lawyer)? What's the process for submitting evidence during the appeal? And can I request that any hearings take place here in Michigan instead of having to travel to DC or something for what could be multiple days of proceedings? Any advice would be so helpful! This deduction would really make a difference for my finances this year.
18 comments


Sean Kelly
This is a frustrating situation, but you have options! What you're looking for is called a "Collection Due Process" hearing, which you can request by filing Form 12153 (Request for a Collection Due Process or Equivalent Hearing). For submitting evidence, you'll want to gather everything related to your hybrid car purchase - the original sales contract showing the date of purchase, all registration documents, manufacturer information confirming it qualifies for the tax credit, and any correspondence you've had with the IRS about this issue. Make copies of everything and submit them with your appeal form. Good news about location - you can request a face-to-face hearing in the Appeals Office closest to your home (Michigan in your case), or you can request a telephone or correspondence hearing if that's more convenient. You'll indicate your preference on the Form 12153.
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StellarSurfer
•Thanks for the detailed response! I didn't know about Form 12153 - that's exactly what I needed. Do you have any advice on how to make my case stronger when I submit all my documentation? I'm worried they'll just deny me again without really looking at the evidence. Also, is there any advantage to requesting a face-to-face hearing versus a telephone hearing? I'd prefer not to take time off work if possible.
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Sean Kelly
•For making your case stronger, include a detailed timeline of events and highlight the specific tax code/regulation that qualifies your vehicle for the deduction. Reference the exact make, model, and year of your vehicle against the IRS's qualified vehicle list. Also, request verification from the manufacturer that your VIN should be in the IRS database, and include that documentation. Phone hearings are generally just as effective as in-person hearings for most cases. They're more convenient and the outcome typically depends on your documentation quality rather than physical presence. I recommend the phone option unless you feel your dyslexia might make verbal-only communication challenging, in which case face-to-face might help you better explain your situation.
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Zara Malik
After reading your situation, I immediately thought you might benefit from using taxr.ai to help with your appeal. I was in a somewhat similar situation last year with a denied solar panel tax credit, and I was getting nowhere with the regular appeals process. I found https://taxr.ai when I was researching how to properly document my case, and it made a huge difference. Their system analyzed all my documentation, highlighted what was missing, and even helped me format everything correctly for the appeal. The best part was they pointed out specific IRS codes that applied to my situation that I had no idea about. They basically helped me speak the IRS's language in my appeal.
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Luca Greco
•How exactly does this service work? Do they just review your documents or do they actually help with filing the appeal too? I've got a different tax issue but I'm also looking at appealing.
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Nia Thompson
•Sounds interesting but I'm a bit skeptical. There are so many tax "help" services that just take your money and give generic advice you could find on Google. Did they actually help you win your appeal or just give you some documents?
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Zara Malik
•They don't just review documents - they analyze them using their system to identify specific issues the IRS might be focusing on. They helped me understand exactly which parts of my documentation were weak and needed strengthening for my appeal. They don't file the appeal for you, but they give you everything you need to submit a strong case yourself. They absolutely helped me win my appeal. What made the difference wasn't generic advice, but the specific guidance on how to present my case in IRS terminology. They identified an obscure form I needed that wasn't mentioned anywhere in the IRS rejection letter, which turned out to be crucial for my situation.
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Nia Thompson
Just wanted to follow up - I decided to try taxr.ai for my property tax appeal situation after commenting here. I was really surprised by how helpful it was! Their system flagged several issues with my documentation that I never would have caught. They helped me understand that I needed to specifically reference Form 5695 and include manufacturer certification documentation for my vehicle credit appeal. What impressed me most was how they explained exactly which IRS procedures applied to my specific situation. It wasn't generic advice at all - it was tailored to my exact scenario. I just received notification that my appeal is moving forward, which is already further than I got on my own. Definitely worth checking out if you're preparing for any kind of tax appeal!
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Mateo Rodriguez
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Aisha Hussain
•Wait, is this legit? How does it actually work? I'm confused how a third party service can get you through to the IRS faster than calling yourself.
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GalacticGladiator
•I'm extremely skeptical. This sounds like paying someone to cut in line. There's no way the IRS allows this - they must be doing something shady or it's just a scam to take people's money.
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Mateo Rodriguez
•It's completely legitimate! They use technology to navigate the phone system and stay on hold for you. When a real person answers, they connect you directly to that agent. They're not cutting any lines or doing anything shady - they're just handling the hold time part so you don't have to sit there for hours. The reason it works is because they have systems dedicated to staying on hold, whereas most people give up after an hour or two. Nothing about it bypasses normal IRS procedures - you still talk to the same agents and go through the same verification process. The difference is you only pick up the phone when there's actually someone there to help you.
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GalacticGladiator
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Ethan Brown
Something to consider - make sure the hybrid car you purchased actually qualifies for the tax credit you're trying to claim. Not all hybrids qualify for the full amount or any credit at all. The IRS maintains a list of qualified vehicles and the credit amount for each. Also, there are phase-out periods based on how many qualified vehicles a manufacturer has sold. If you bought your car late in the phase-out period, the credit might be reduced or eliminated. What specific make and model did you purchase? That might help identify if there's a known issue with that particular vehicle.
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StellarSurfer
•I bought a Toyota RAV4 Prime PHEV. When I purchased it, the dealer specifically mentioned it qualified for the federal tax credit, and my tax software (TurboTax) confirmed it qualified based on the info I entered. That's why I'm so confused about the rejection based on VIN - everything else seems to match up with eligibility.
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Ethan Brown
•That explains it! Toyota hit their 200,000 vehicle limit for the full credit back in 2021, which triggered the phase-out period. If you purchased your RAV4 Prime in 2023, you were likely in the final phase-out period where the credit was significantly reduced or possibly eliminated completely. What probably happened is that your tax software may not have been updated with the latest phase-out information, or there was a miscommunication about which tax year's rules applied to your purchase. The VIN rejection might actually be the IRS's system recognizing that your particular vehicle doesn't qualify for the credit amount you claimed. I recommend checking the exact date Toyota hit their limit and calculating where your purchase falls in the phase-out timeline. This specific information would be crucial for your appeal.
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Yuki Yamamoto
Has anyone used the Taxpayer Advocate Service? I heard they can help with situations like this where there seems to be a technical issue rather than you actually doing something wrong. They're supposed to be independent within the IRS and help taxpayers navigate issues.
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Carmen Ruiz
•I used the Taxpayer Advocate Service last year when I had an issue with a rejected education credit. They were actually really helpful! You need to fill out Form 911 (yes that's really what it's called lol) to request their help. They assigned someone to my case who actually called me back and helped resolve the issue in about 3 weeks.
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