IRS Publication 5867-B – IRS Form, Instructions, Pubs 2026)

IRS Publication 5867-B – In the evolving landscape of clean energy incentives, dealers and sellers of electric and clean vehicles play a crucial role in facilitating tax credits for buyers. IRS Publication 5867-B, titled “Clean Vehicle Dealer and Seller Energy Credits Online Registration: Return Vehicles (For Dealers),” provides essential guidance on handling returns, cancellations, and voids of Time of Sale Reports. This publication, revised in December 2024, helps ensure compliance while maximizing the benefits of clean vehicle tax credits under the Inflation Reduction Act. Whether you’re a registered dealer navigating the IRS Energy Credits Online (ECO) tool or seeking to understand the return process, this SEO-optimized article breaks down the key details using trusted sources from the IRS.

What Is IRS Publication 5867-B?

IRS Publication 5867-B is a user guide specifically designed for dealers and sellers of clean vehicles. It focuses on the procedures for returning vehicles, canceling or voiding Time of Sale Reports submitted through the IRS ECO portal. This document is part of a broader suite of resources for the clean vehicle credit program, which allows buyers to transfer tax credits to dealers for immediate rebates or price reductions at the point of sale.

The guide addresses scenarios where a vehicle sale doesn’t proceed as planned, such as when a buyer returns the vehicle or when a report was submitted in error (e.g., for leased vehicles). It’s cataloged under number 95361E and is available as a free PDF download from the official IRS website. This publication complements related documents like Publication 5867 (general online registration user guide) and Publication 5867-A (time of sale reporting guide).

Key highlights include:

  • Purpose: To assist in modifying submitted reports via the ECO tool’s “Modify” function.
  • Target Audience: Registered dealers and sellers participating in the clean vehicle advance payment program.
  • Release Date: December 2024 revision, with updates reflecting enhancements to the ECO tool announced in October 2024.

Eligibility and Requirements for Returning Clean Vehicles

Not every situation qualifies for a return, void, or cancellation. The publication outlines specific eligibility criteria to ensure the integrity of the clean vehicle credit system:

  • Voiding a Report: Only available within 48 hours of submission and if the vehicle has not been placed in service. This is ideal for immediate corrections.
  • Canceling a Report: Applies after the 48-hour window if the vehicle wasn’t placed in service, or for reports mistakenly submitted for leased vehicles (since leases do not require Time of Sale Reports).
  • Returning a Vehicle: For cases where the vehicle was placed in service after 48 hours but is later returned by the buyer.

Dealers must be registered with the IRS ECO system to access these features. Requirements include:

  • No advance payments received or the vehicle not yet placed in service for voids/cancellations.
  • Attestations confirming the accuracy of the information.
  • Repayment of any advance payments received before resubmitting reports for the same VIN.

For leased vehicles, the guide emphasizes that reports should not be submitted at all, and any erroneous ones must be canceled promptly, noting that the buyer is the lessee, not the lessor.

Step-by-Step Process for Returning Vehicles Using IRS ECO

The IRS ECO tool streamlines the return process. Here’s a detailed walkthrough based on Publication 5867-B:

  1. Log In to IRS ECO: Access your account via the IRS portal. If you’re a new user, refer to Publication 5867 for setup instructions.
  2. Locate the Report: Navigate to “Submitted Time of Sale Reports” and select “Modify” for the relevant entry.
  3. Choose the Action: After 48 hours, select “I need to return a vehicle or cancel a seller report.”
  4. Enter Details:
    • Return or cancellation date.
    • Reason for the action (e.g., vehicle not placed in service, leased vehicle).
    • A description (up to 500 characters) explaining the situation.
  5. Attest and Submit: Check the required attestations and submit. For voids (within 48 hours), select “Void” instead and provide a reason.
  6. Post-Submission Steps: Download the modified report and provide it to the buyer. The VIN becomes eligible for a new report after IRS review if applicable.
  7. Repay Advances if Needed: Any received payments must be repaid in full.

Troubleshooting tips include clearing browser cache, using incognito mode, or switching browsers if the Modify function isn’t visible.

Key Warnings and Considerations for Dealers

Publication 5867-B includes several cautions to avoid compliance issues:

  • No Reports for Leases: Submitting one in error requires immediate cancellation.
  • Credit Limitations: Returned vehicles resold within 30 days may disqualify subsequent buyers from credits, treating it as intent to resell.
  • Buyer Limits: Buyers can transfer credits for at most two vehicles per year (one previously owned).
  • Incomplete Submissions: Missing descriptions or attestations will block processing.
  • Repayment Obligations: Dealers must repay advances before reusing the VIN.

If issues arise, use the secure messaging feature in ECO for assistance, as detailed in Publication 6025.

Benefits of Complying with IRS Publication 5867-B

Adhering to these guidelines not only ensures regulatory compliance but also:

  • Allows vehicles to be resold with potential credit eligibility.
  • Streamlines operations through the ECO tool’s enhancements.
  • Supports the broader goal of promoting clean vehicle adoption by maintaining trust in the credit transfer system.

Dealers can subscribe to Clean Vehicle e-News for updates on program changes.

Frequently Asked Questions About Clean Vehicle Returns

Here are common queries addressed in the publication and related IRS resources:

  • Can I void a report after 48 hours? No; use cancel or return instead.
  • What if the vehicle was leased? Cancel the report and note the lessee status.
  • How long until a VIN is reusable? After IRS review following submission.
  • Do I need to repay advances? Yes, in full for returned or canceled reports.
  • Where can I get help? Use secure messaging in ECO or email [email protected] for specific questions.

Final Thoughts on IRS Clean Vehicle Credits for Dealers

IRS Publication 5867-B is an indispensable resource for dealers managing clean vehicle returns, ensuring smooth operations in the energy credits program. By following these guidelines, you can avoid pitfalls, repay advances efficiently, and continue supporting eco-friendly transportation. For the latest updates, always check official IRS sources, as program details can evolve.

Stay informed and compliant to leverage the full potential of clean vehicle tax incentives in 2026 and beyond.