SPRINGFIELD, MISSOURI — Prime Inc., one of the country's largest trucking companies, has filed a federal lawsuit seeking an $11 million refund from the Internal Revenue Service for federal fuel excise taxes the company says were wrongfully collected on diesel fuel used to power its refrigerated trailer units — not to drive the trucks.

The complaint was filed on June 16, 2026, in the U.S. District Court for the Western District of Missouri. Prime is seeking a refund of $11,016,644 in federal fuel excise taxes collected between 2018 and 2021.

The Legal Argument

Prime argues that diesel fuel used exclusively to power the refrigeration units on its trailers — not to propel the vehicles — constitutes an "off-highway, nontaxable business use" under the IRS Fuel Tax Credit, which provides exemptions for fuel used in certain non-driving work-related activities. The company contends that taxing that fuel as standard highway fuel was improper.

The History of the Dispute

Prime previously filed for refunds covering the periods ending March 31, 2018, through December 31, 2020. All of those claims were denied by the IRS. The company filed an additional claim on September 12, 2025, covering 2021. As of the filing of the complaint, Prime had received neither a refund nor a denial notice for the 2021 claim.

In addition to the $11 million refund, Prime is seeking litigation costs, attorney fees, and prejudgment and post-judgment interest.

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