ATV owners be warned

[slowgreen99]

I bought my ATV back in 2007 and just got a letter from the IRS today. I was told buy my salesman that if we owned 5+ acres of land that it could be considered "farm equipment". Well, since we do, I filled out the paperwork for the tax exemption and that was that.

Well, almost 3 years later, I now have a $561.98 bill from the IRS stating that ATVs do not fall into "farm equipment" in any way, shape, or form.

The bill is broken down as:

original sales tax amount- $377.44
Interest- $55.83
Penalty- $168.72

I think this is complete bullshit IMO. I wouldve much rather financed the price of the taxes into the payments rather than get this bill, plus the fees and interest.

My neighbor did go to Velocity, and they gave him a check that covered the Interest and Penalty. That is absolutely fair, BUT beside the point. I dont have extra money to just throw around on stupid shit like this, and I dont even own the ATV anymore!

So far theyve sent these bills to my Bro in Law, Me, my neighbor and his wife.

Done with my rant.

[Mustangscotty]

Always get tax info in writing. Its sort of like believing DeWalt has an M4 nail gun, you can't just take someone's word for it.

Did you get your money from the dealership to pay the IRS?

[slowgreen99]

Always get tax info in writing. Its sort of like believing DeWalt has an M4 nail gun, you can't just take someone's word for it.

Did you get your money from the dealership to pay the IRS?

I just got off work around 8. Im going up there tomorrow to see what the deal is. And what do you mean get it in writing? It was a legal form I had to fill out for the exemption...im sure they have it on file somewhere. Regardless, if the IRS says ATVs arent in the category, then there's nothing I can do im sure.

[LXtasy]

That sucks. I actually thought that was true. Unfortunately I do not own 5 acres and I paid all the taxes in with the financing.

[jmd]

srry to hear that. i know money is tight.

[slowgreen99]

Like I said though, whats fair is fair with them cutting a check for the "extra costs", but I dont have the money for it right now, and its just another road block on car parts. Yay

[BAD BOB]

dont pay them then they can just take it out of taxes next year

[slowgreen99]

dont pay them then they can just take it out of taxes next year

I know thats what will happen when I get my tax return.

[Mustangscotty]

I just got off work around 8. Im going up there tomorrow to see what the deal is. And what do you mean get it in writing? It was a legal form I had to fill out for the exemption...im sure they have it on file somewhere. Regardless, if the IRS says ATVs arent in the category, then there's nothing I can do im sure.

The seller may be liable.

Also, what can the IRS bill mean for you in the future? An audit or more likely of an audit? Consider what damages have really been done. Maybe this is just making drama.. Nonetheless, I would be pissed off at the dealer. If you can have them type up a letter of "apology or explanation" and send a copy in with the IRS bill, that may be a good thing. You just never know if a mundane apology letter could come in handy in the future.

[MonteC]

I was told buy my salesman that if we owned 5+ acres of land that it could be considered "farm equipment".

Always get tax info in writing.


I would have had the sales guy put it down in writing so id have legal recourse in the event he was wrong. Unless they are stand up people and will reimburse you for the mistake.

Sales guys have been known to say things that are not true to sell stuff.