Worldwide Equipment Inc. is suing the Internal Revenue Service to try to get back $2.5 million in taxes.
The company, based in Prestonsburg, argued in the federal lawsuit filed last week that the government incorrectly classified a Mack coal truck that Worldwide sells.
The government took the position that the truck, a Mack Model GU713, was a highway vehicle, meaning it was subject to a federal excise tax, according to the complaint.
However, the company's position is that the truck is exempt because it is not designed or suited for anything other than incidental highway use.
The truck does not travel at regular highway speeds, is overweight and too wide, and would require a special permit for highway use, according to the lawsuit.
The company asked for a refund after paying the tax in 2008, 2009 and 2010, but the IRS said no.
Worldwide filed a separate lawsuit seeking to get back $146,000 for a sister company in Tennessee.
Worldwide has facilities in several locations in Eastern and southern Kentucky, as well as in Lexington and in other states.