Important Update: IRS Reporting Deadline Extension for Clean Vehicle Sellers

Deadline Extension:

The IRS has extended the deadline for reporting clean vehicle sales until January 31, 2024. Previously sellers had to submit their reports within 15 days after the end of the calendar year (January 15, 2024). This extension gives you more time to ensure compliance.

Reporting Requirements:

Sellers’ information for vehicles placed in service in the calendar year 2023 should be submitted via email to irs.clean.vehicles.seller.reporting@irs.gov

·        The IRS-preferred format for these submissions is an excel spreadsheet containing all required data from all seller reports a seller or dealer prepared in calendar year 2023.

·        Sellers or dealers may also submit individual seller report copies of the Form 15400 or equivalent forms containing all required data the seller/dealer used in calendar year 2023. Sellers and dealers that used reasonable alternatives to Form 15400 in providing the required seller reports to buyers do not need to prepare the information in the Form 15400 format.

To protect your sensitive data during the submission process, the IRS emphasizes the following steps:

Formats: The IRS will accept common formats from software like Microsoft Word, Excel, and Adobe Acrobat (PDF) or image formats like JPG and TIFF

Encrypt Your Documents: It is mandatory that all documents you send to the IRS are encrypted. This ensures that your information remains secure during transmission.

Password Protection: After encrypting your documents, password-protect them. Use a strong password that includes a mix of letters, numbers, and symbols. This added layer of security safeguards your information from unauthorized access.

Subject Line Caution: Standard email is not encrypted, so avoid including sensitive information in the subject line and the body of your email. This includes your full name, Social Security or taxpayer identification number, personal address, and phone number.

Follow-up Email: After sending the encrypted and password-protected document, send a follow-up email with the password without changing the subject line. Be vigilant, as lost passwords cannot be recovered.

Backup Copy: To mitigate potential password loss, create a copy of your original document and save it under a new name. Encrypt, password-protect, and send the copy. This way, you can access your original document if the password is lost.

The IRS recommends for detailed instructions on encrypting and password-protecting Microsoft Office and Adobe Acrobat (PDF) documents, please refer to the U.S. Treasury Department's guide at the following site: https://home.treasury.gov/how-to-encryptpassword-protect-microsoft-office-and-adobe-acrobat-pdf-documents