Prime Inc. seeks over $11 million in tax refunds from the U.S. IRS
In its lawsuit, Prime Inc. claims that fuel used for its trailer refrigeration units should be considered 'non-highway, non-taxable commercial use,' and therefore it is entitled to tax credits. The IRS has rejected part of its refund claims for 2018 to 2021, and the company is now seeking judicial relief.
U.S. trucking company Prime Inc. has filed a legal complaint in federal court, alleging that the Internal Revenue Service (IRS) misinterpreted tax regulations and claiming that the agency should refund it more than $11 million in taxes. The complaint states that the IRS acted improperly in reviewing the refund application.
In the complaint, Prime Inc. argues that the fuel consumed by its trailer refrigeration units should qualify for an income tax credit. According to the company's interpretation of the tax code, fuel used for cooling purposes should be classified as "non-highway, non-taxable business use," and therefore meets the conditions for the tax credit.
Previously, the company had submitted refund applications to the IRS for the tax periods from 2018 to 2021. The complaint shows that the IRS responded in 2024 and on June 11, 2026, respectively, denying the application and the subsequent appeal, and has still not made a decision on the 2021 application.
The lawsuit seeks an amount exceeding $11 million, and also requests that the federal court order the IRS to bear other related costs, including attorney fees, and grant further relief as the court deems appropriate.
According to the IRS'sfuel tax credit guide, in certain business situations, a tax credit may apply if fuel is not used for regular driving purposes, such as in agricultural use, construction sites, or vehicle use on private property. Prime Inc.'s lawsuit is based on this provision.
The full text of the complaint can be viewed at:New Prime v. USA。