Jury Lets Co. Off Hook For $400M In Tax On Restored Trucks

Law360: Jury Lets Co. Off Hook For $400M In Tax On Restored Trucks

July 21, 2023

United States
United States
United States

Eversheds Sutherland Senior Counsel Kendall C. Jones is quoted in this Law360 article that discusses his successful representation of Fitzgerald Truck Parts and Sales, LLC (Fitzgerald) against claims by the Internal Revenue Service (IRS) on the treatment of repaired highway trucks sales in a suit to recover $400 million in federal excise taxes.

“It's a mystery why the federal government has pursued the glider truck issue considering an appeals court recently rejected the government's reading of the safe harbor,” Kendall said. The IRS had concluded in previous examinations that the company was eligible for the safe harbor for its tractors, he said.

"The IRS changed its mind about repairs of worn or wrecked highway tractors sometime around 2014 and started auditing small businesses all across the country for highway excise taxes that it said were owed on repaired big-rig trucks — even though the IRS hasn't issued any guidance since 1991," he said.

"That's not fair, it hurt a lot of small businesses and hopefully now the government will do the right thing and drop the issue," he added.

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kendalljones@eversheds-sutherland.com

Kendall C. Jones

Senior Counsel

Washington, DC, United States

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