Back-Dated Purchase Invoice on New Prius

Do you remember those Motel 6 commercials, with Tom Bodett, "we'll leave the light on for you"?

Same here, except it will be the warden in the federal penitentiary who'll be saying it. This is outright tax fraud, no ands, ifs or buts.

 

<div class='quotetop'>QUOTE(Charles Suitt @ Sep 19 2006, 07:21 PM) [snapback]321929[/snapback]</div>

Car dealers do it all the time to get that expiring special finance rate, rebate etc.

 

Would there be a problem with a delay in applying for registration, or the lag in getting the car insured?

I suppose (if you actually had the car in your possession in the first place by Sept. 30) you'd be bonded for a short while on your current policy, but I don't know if it lasts for 10 days.

I assume you'll be paying cash? I don't think this will work otherwise. Most lenders will need proof of insurance on an actual car...since it's theirs, and not yours, after all...and you won't have a VIN, yet, right, until the car shows up...?

I suspect this might cause more of a paper trail than might be expected.

But, hey, like most illegal things, it'll be a problem only if someone finds out...

On a more philosophical note, don't you find it a little difficult to respect a dealer who would offer to do such a thing? It makes me wonder what else they're up to.

 

<div class='quotetop'>QUOTE(Pinto Girl @ Sep 19 2006, 08:33 PM) [snapback]321970[/snapback]</div>

 

<div class='quotetop'>QUOTE(Pinto Girl @ Sep 19 2006, 05:33 PM) [snapback]321970[/snapback]</div>

Which is much easier because the OP uses his true name to post here. What's the current reward for turning in a tax cheat?

 

<div class='quotetop'>QUOTE(BobZ @ Sep 19 2006, 06:36 PM) [snapback]321938[/snapback]</div>

I feel that there's a pretty big difference between dealers breaking the rules to get something from their manufacturer/partner, and breaking the law to get something from the federal government.

(I'm picturing the salescritter from the movie Fargo who kept faxing in the smudged VINs to buy himself time to cover his tracks.)

My advice: don't count on the full rebate. Decide whether or not the car is worth it to you at the MSRP (or whatever the dealer is offering). If you get the rebate, great; if not, you've still got a nice car at a reasonable price.

 

could you buy the car before it arrives? prepay for it? obviously the lawyers here know much better about the legal ramifications than i do, but overall it sounds dishonest and that rubs me the wrong way.

 

There are too many easily-traceable transactions associated with buying the car.

- The actual date you pay the dealer for the car;
- Your bank records to verify the above;
- The date the dealer uses to activate your Toyota warranty;
- Your registration application;
- The date you call your insurance company to insure the car;
- Testimony from anyone involved in any part of the transaction, from the salesman to the finance guy to the guy who prepped your car.

The IRS could subpoena all of this information and nail you. Even if they do not file tax-evasion charges, they will require you to pay back the tax credit, plus interest and penalties.

 

The the IRS website read purchased on or before NOT when you take delivery! Go read it for yourself

The Energy Policy Act of 2005 replaced the clean-fuel burning deduction with a tax credit. A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation. The tax credit for hybrid vehicles applies to vehicles purchased or placed in service on or after January 1, 2006.

http://www.irs.gov/newsroom/article/0,,id=157632,00.html


http://www.toyota.com/prius/tax.html#fedtaxdeductions

 

<div class='quotetop'>QUOTE(galaxee @ Sep 19 2006, 08:57 PM) [snapback]322021[/snapback]</div>

Well with this post you pretty much have eliminated the excuse that you "thought it was OK" Are they going to backdate the tag receipts and everything else. This takes more than one person and that increases the odds of a bad outcome. Also anyone with authority to do all this would be crazy to actually do it for cars that are pretty much selling themselves and risks getting the dealer in trouble also. Just my $0.02.

 

Dude! Go buy a striped uniform. You'll need it.

 

<div class='quotetop'>QUOTE(Charles Suitt @ Sep 20 2006, 02:32 PM) [snapback]322363[/snapback]</div>

Sorry it worked out that way.

I still haven't seen it in writing anywhere that there will be a tax credit given for the 2007 Prius.

 

You know, just because "everybody does it" doesn't mean you have to participate...right?

I think that public opinion/the odds of getting caught are irrelevant...it's all about how you choose to live your life and what you feel honors you as a person...and what doesn't.

Not to mention, respecting the rest of us who ARE honest with the IRS. You do realize that, basically, you'd be stealing from ME if you and your friendly dealer participated in such a scheme?

 

I thought it was effective only on the date the car gets registered

 

<div class='quotetop'>QUOTE(Charles Suitt @ Sep 20 2006, 05:06 PM) [snapback]322459[/snapback]</div>

Here's another link from Toyota. It's a lot easier to read than the IRS BS

http://www.toyota.com/prius/tax.html

The bottom line here is this is a very grey area according to my tax guy and it is just a line on a standard 1040 form. Nothing else. No extra forms. He says even if you were questioned a dated buyers order will suffice.

I'll tell you all a quick story. I adopted a child from Russia three years ago. The IRS gives you an $11,000 tax credit for that! Provided you spent that much or more. Cost me quite a bit more but NO ONE asked for any proof of this expense.

 

<div class='quotetop'>QUOTE(BobZ @ Sep 20 2006, 09:00 PM) [snapback]322586[/snapback]</div>

that would probably happen only if you were audited.

 

There is another, much less legally/morally ambiguous option. That would be that since you won't be taking delivery of the '06 Prius in time to get the full tax credit, your dealer should be willing to discount the price of the car the amount of the credit that will be lost ($1575).

The dealers will be looking to discount the remaining '06 cars, anyway, even on a Prius (where sales may have slowed due to the recent dramatic lowering of gas prices).

It's worth a shot if the dealer really wants to sell the car. Since nearly all '06 Prius sell at or above MSRP, they can definitely afford to take the hit and still make a profit.