Trailer Company Loses Bid for Excise Tax Refund in IRS Dispute

A federalcourt has shot down truck company’s challenge to more than $4 million in excise taxes and penalties saying it was relying on outdated advice later superseded by Congress.

The US District Court for the District of South Dakota granted most of the government’s motion to dismiss a case brought by trailer maker Trail King Industries Inc. seeking $4 million in refunds for taxes on the sale of over-the-fifth-wheel live bottom trailers—specialized truck trailers used mainly for hauling in the construction and agriculture industries.

Judge Roberto A. Lange said 2004 guidance the IRS gave the company in a technical advice ...