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Truck dealer files suit against the IRS over excise tax application

Successful Dealer Staff July 14, 2014

Kentucky heavy truck dealer Worldwide Equipment Inc. says it is due a tax refund and is taking the Internal Revenue Service to court to get it.

According to Kentucky.com, the company has filed a $2.5 million dispute in federal court claiming the government incorrectly classified a Mack coal truck as on on-highway truck, resulting in the overpayment of associated taxes. 

The government claims the truck, a Mack GU713, is a highway vehicle and subject to a federal excise tax, according to the complaint.

However, the company argues the truck should be exempt since it primarily is used and designed as an off-highway truck. According to Kentucky.com, the lawsuit claims the truck does not travel at highway speeds, is overweight and too wide, and would require a special permit for highway use. 

This isn’t the first time Worldwide Equipment has fought the government’s interpretation of excise tax rules. The company in 2010 filed a claim over the sale and taxation of another coal truck, Mack’s RD888SX. 

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