ESSEX COUNTY - C.A.R.S. (Cash For Clunkers) and Back Taxes.

C.A.R.S. (Cash For Clunkers) and Back Taxes.
There is a lot of bad information out there about the C.A.R.S (Or Cash For Clunkers) program. Today, I heard a car dealer on a radio talk show say that if the consumer owes any federal or state taxes when they buy a Cash For Clunkers car, the dealer is on the hook to get reimbursed by the consumer or eat the difference, because the federal payment will take out the taxes owed before sending out the rebate.

UNTRUE!

One, the paperwork is submitted by the dealer to the National Highway Traffic Safety Administration, not the IRS and definitely not to the state revenue department. In fact, the NHTSA goes out of their way in the rule to note that they are not experienced or authorized to deal with taxes.

Two, the rebate is payable to the dealer, not to the individual. The dealer provides the discount at sale, not at reimbursement. If rebates were subject to tax checks, dealers would be essentially become responsible for collections of back taxes. That would be messy and cumbersome – not to mention the number of privacy issues involved.

Three, the rule clearly states:

“For a purchaser, a dealer must collect individual or entity name, address and State or corporate identification number (e.g., driver’s license number, State identification number, corporate tax identification number). This information is used to verify the identity of the purchaser and to confirm no prior participation in the program.”

In theory, then, you could simply provide your name, address and license number. That’s not enough information to run a tax check instantaneously. I mean, the IRS database is good, but it’s not that good.

CONTACT US AT:
CONTACT AN H&R BLOCK YEAR ROUND OFFICES IN THE AREA:

Short Hills:
760 Morris Turnpike
Short Hills, NJ, 07078
973-376-4062

Irvington:
1094 Clinton Ave
Irvington, NJ 07111
973-371-0400

Maplewood:
1730 Springfield Ave
Maplewood, NJ
973-763-3883)

West Orange:
24428 Green Shopping Center
495 Prospect Ave, 401B,
West Orange, NJ, 07052
973-325-1880

East Orange:
(549 Main Street
East Orange, NJ, 07018
973-674-6089

Broad Street:
726 Broad Street
Newark, NJ, 07102
973-624-6712

Bloomfield Ave:
142 Bloomfield Ave
Newark, NJ, 07104,
973-484-2148

Ferry Street:
97A Ferry Street
Newark, NJ, 07105
973-522-0076

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