By David Thomas on February 3, 2011
An audit performed by the U.S. Treasury Inspector General for Tax Administration — TIGTA for short — discovered that nearly 20% of all tax credits for electric and alternative-fuel vehicles were filed improperly. This 20% totaled $33 million in tax credits going to people who bought cars as varied as a Buick Enclave — a crossover with a combined mileage rating of 19 mpg — to the non-hybrid Hyundai Sonata.
The IRS said it is taking “corrective actions” on the erroneous credits, but whatever is done, the mistakes will be a blow to a program that many believe is artificially aiding the sales of EVs and other vehicles.
IRS Misfired on Tax Credit Claims for Plug-in Cars, Audit Finds (Detroit News)
Managing Editor David Thomas has a thing for wagons and owns a 2010 Subaru Outback and a 2005 Volkswagen Passat wagon. Email David