X

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. 

Poll

How would you categorize the state of your business 10 months into 2014?

Latest

Rush Enterprises Q3 income jumps $8M, sets a slew of company records

Wisconsin dealer named among state’s elite businesses

September trailer orders ‘strong’, up 80%

Popular

Utility releases video showcasing new trailers

Record keeping key to surviving customer complaints

Meritor will offer new axle ratios next year for downsped engines

Successful Dealer Award

Click here to read about the award and see the nominees for this year's award.