Parts Seller Must Drop $5.47 Million Excise Tax Abatement Claims

A truck parts seller can’t sue the IRS to abate nearly $5.47 million in federal excise taxes on vehicle sales because the Anti-Injunction Act bars claims seeking to restrain the collection of unpaid taxes, a federal court ruled.

Elkhorn Valley Trucks LLC alleged that the IRS wrongfully assessed excise taxes based on the mistaken interpretation that the company manufactured and sold trucks, when actually, EVT customers buy part kits and assemble their own trucks. It asked the US District Court for the District of Nebraska to abate the unpaid taxes and refund $232,000 to the company for having paid tax ...