PORTLAND, Ore. – For Northeast Portland residents Katie Larsell and Michael Schilmoeller, buying an electric vehicle this summer was supposed to come with big savings. But just weeks after driving their Kia EV6 off the lot, they realized the $7,500 federal tax credit they counted on was in jeopardy.
The problem wasn’t their eligibility — it was their dealership’s failure to file the required paperwork with the IRS.
A Costly Oversight
Larsell said she pushed her salesperson at Weston Kia in Gresham about whether a special IRS form was needed. The employee insisted it wasn’t.
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“I really had to push,” Larsell told The Oregonian/OregonLive. “The way this went, it was almost like they didn’t know about it.”
After checking the IRS website days later, Larsell realized the missing document was called a “time-of-sale report.” Without it, the couple risked losing their federal incentive when filing 2025 taxes.
By then, the IRS’s three-day filing window had passed, and Larsell said her “heart sank.” Only after multiple calls and escalating her complaint to the dealership’s vice president of operations, Jacob Weston, did she finally receive the report — 16 days after purchase.
Not an Isolated Case
Larsell’s experience isn’t unique. She alerted friends in Gresham, Richard Curtis and Jan Apland-Curtis, who had purchased the same Kia EV6 at Power Kia in Salem earlier in the year. They discovered their dealership also hadn’t filed the paperwork.
After weeks of unanswered emails and phone calls, the couple finally received their documents — but only because they knew what to ask for.
“We were blindsided,” Curtis said. “It’s just maddening.”
Apland-Curtis added, “We think this is happening to a lot of people, and it doesn’t feel fair to the consumer.”
IRS Rules and Dealer Responsibility
Since Jan. 1, 2024, federal law has required dealers to file time-of-sale reports within three days of an EV purchase. Buyers must also receive a copy of the report and confirmation that the IRS accepted it. Without these steps, customers can’t claim the $7,500 credit (or the $4,000 used-EV credit) when they file taxes.
The IRS has extended flexibility, allowing late submissions if dealerships provide reasons for the delay. This grace period ultimately saved both Oregon couples from losing their credits.
But advocates warn that too many dealerships are unaware, misinformed, or failing to follow through — leaving customers in limbo.
What Went Wrong?
The National Auto Dealers Association (NADA) flagged this risk earlier this year, urging members to train staff and follow IRS guidance. Still, confusion persists.
Dealership leaders, like Weston at Weston Kia, say the process isn’t always straightforward. “At times, I’ve encountered delays on the IRS’ side in accepting the information,” Weston said. But he declined to address Larsell’s specific case, citing customer privacy.
Power Kia’s general manager did not respond to requests for comment.
State vs. Federal Incentives
For Larsell, the contrast between state and federal programs was striking. When she bought her EV on Aug. 26, the dealership immediately applied Oregon’s $2,500 EV rebate to the sale price. But that program expired on Sept. 8.
The federal credit, by contrast, required extra paperwork and vigilance. Without her persistence, she might never have known her claim was at risk.
A Broader Problem
Consumer advocates warn that these cases are part of a larger pattern. With thousands of Oregonians purchasing EVs in 2025, many may be unaware that their dealerships haven’t filed the necessary reports.
The IRS has issued instructions for two consecutive years, yet some dealers continue to drop the ball. The stakes are high: losing a $7,500 credit could be devastating for buyers who factored it into their budgets.
“It made my heart sink,” Larsell said. “I just kept thinking — what if I hadn’t checked?”
How Buyers Can Protect Themselves
For Oregonians buying EVs this year, here’s what experts recommend:
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Request Documentation Upfront: Insist on a time-of-sale report and a copy of the IRS confirmation within three days of purchase.
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Check the IRS Portal: Verify that the dealer submitted your information.
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Follow Up Quickly: If you don’t have confirmation within a week, contact your dealership’s management, not just the salesperson.
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Contact the IRS if Needed: Buyers may need to escalate concerns to ensure eligibility for the credit.
Looking Ahead
The IRS has pledged to continue working with dealerships to streamline the reporting process. But for now, the burden often falls on consumers.
For Larsell, Schilmoeller, Curtis, and Apland-Curtis, persistence paid off. They will still receive their $7,500 credits when they file taxes in 2026.
But their message to fellow EV buyers is clear: don’t assume your dealer has done everything correctly.
“Consumers shouldn’t have to fight this hard for something that’s supposed to be automatic,” Curtis said.
