Grassley, Colleagues Send Letter to IRS Commissioner on Unchecked Misuse of Electric Vehicle Tax Credit
Jan 28, 2020
WASHINGTON — Sen. Chuck Grassley (R-Iowa) joined Sens. Ron Johnson (R-Wis.), John Barrasso (R-Wyo.) and 12 of their colleagues in sending a letter to IRS Commissioner Charles P. Rettig requesting information to understand better how the IRS enforces the electric vehicle tax credit in light of a Treasury Inspector General for Tax Administration audit report that detailed what appear to be systemic problems with the tax-credit program.
“On September 30, 2019, the Treasury Inspector General for Tax Administration (TIGTA) released an audit report finding that taxpayers improperly claimed $72 million in tax credits for electric vehicles and that the IRS ‘does not have effective processes to identify and prevent [these] erroneous claims.’ Notably, in 2011, TIGTA released an audit finding $33 million in tax credits for plug-in electric drive motor vehicles—one in five of every claimed tax credit—were awarded to individuals who owned vehicles that did not qualify. In other words, despite recognizing this fraud eight years ago, it has not only persisted but become even more widespread,” the senators wrote.
Grassley, Johnson and Barrasso were joined in sending the letter by Sens. James Lankford (R-Okla.), Joni Ernst (R-Iowa), Mike Braun (R-Ind.), Thom Tillis (R-N.C.), Pat Toomey (R-Pa.), John Cornyn (R-Texas), Jim Risch (R-Idaho), Ted Cruz (R-Texas), Mike Crapo (R-Idaho), John Kennedy (R-La.), Bill Cassidy (R-La.) and James Inhofe (R-Okla.).
The full text of the letter to Commissioner Rettig can be found here.