Question
form 5695 residential energy credit
Client just got a CP12 letter, citing a " miscalculation" Details are as follows: Client had a tree fall on their house. They chose to install solar panels in restoring their roof. Form 5695 is a bit tricky, but I assumed the $33,061 qualified for Part I, allowing for a 30% credit of $9,918.IRS sent the CP notice of change, stating that Part II of the Form 5695 is limited to $500. IRS changed from Part I to Part II. My question is: Did I misinterpret the rules as to what qualifies for Part I vs Part II, or did IRS make an error in their review?
