A legal complaint says the Internal Revenue Service owes trucking business Prime Inc. over $11 million and alleges the federal government wrongfully interpreted tax regulations.
The motor carrier said in its complaint that it deserves an income tax credit for its fuel purchases for refrigeration units on its trailers. That’s because the fuel for cooling under the tax code, according to Prime Inc., should be considered an “off-highway, nontaxable business use.”
The company previously sought refunds through the agency for tax periods from 2018 through 2021. The IRS sent responses in 2024 and June 11, 2026, rejecting the request and an appeal and still not making a decision on the 2021 period, according to the complaint.
The $11 million request also calls for a federal court to award other costs, including attorneys fees, and further relief determined by the court.
A tax credit applies in certain business cases “where fuel isn’t used for regular driving purposes,” such as farming and vehicle use on construction sites and private property, according to IRS guidance.
