LOUISVILLE, Ky. (AP) - A split federal appeals court has
reinstated a challenge on how the federal government taxes trucks
used to haul coal from mines to loading areas.
By a 2-1 vote, the U.S. 6th Circuit Court of Appeals said U.S.
District Judge David Bunning erred in ruling for the Internal
Revenue Service in a tax dispute with Worldwide Equipment Inc., of
Worldwide Equipment sued the federal government in 2004,
challenging a $119,302 tax levied on a type of truck it sold. The
IRS countersued, saying Worldwide Equipment owed $1.1 million for
failing to pay taxes on multiple trucks sold from 1999-2003.
At issue is whether the trucks were designed primarily for
off-road use, which would make them exempt from the tax, or for use
on state and federal highways, in which case the tax would apply.
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