Walter Pickhardt has over 30 years of experience representing clients in federal and state tax disputes at the administrative level and in court.  Walter's federal experience includes handling controversies relating to income tax, estate tax and excise taxes (including the Section 4958 intermediate sanctions tax).  He has extensive experience in resisting IRS summonses, including summonses for tax accrual workpapers and computer software. Walter's state experience includes handling controversies involving virtually all of the tax types in Minnesota, as well as income and sales taxes imposed by other states. Representative published decisions in which he was counsel for the taxpayer include:

Federal Cases

• Wells Fargo & Co. v. United States (D. Minn. filed Sept. 1, 2010) (summons enforcement case concerning tax accrual workpapers created to document tax reserves set under FIN 48) (decision pending)
• United States v. Living Word Christian Center, 2009 WL 250049 (D. Minn. 2009) (district court agreed with client that IRS national church examination procedures were unlawful; following decision, Treasury proposed to change regulations and procedures)
• Central Valley Ag Enterprises v. United States, 531 F.3d 750 (9th Cir. 2008) (Ninth Circuit upheld bankruptcy court's jurisdiction to consider TEFRA partnership issues)
• Wells Fargo & Co. v. Commissioner, 120 T.C. 69 (2003) (Tax Court held that client could immediately deduct payments to VEBA for post-retirement medical benefits)
• Rauenhorst v. Commissioner, 119 T.C. 157 (2002) (Tax Court rejected IRS denial of charitable contribution deduction and admonished IRS counsel not to take positions contrary to revenue rulings)
• Wells Fargo & Co. v. Commissioner, 224 F.3d 874 (8^th Cir. 2000) (Eighth Circuit upheld client's deduction of legal and other expenses incurred in a merger; Treasury subsequently modified capitalization regulations)
• Dayton Hudson Corporation v. Commissioner, 153 F.3d 660 (8^th Cir. 1998) (Eighth Circuit held that client could deduct estimated inventory shrinkage using the retail LIFO inventory method; Congress subsequently amended Code to permit estimates)
• United States v. Norwest Corporation, 116 F.3d 1227 (8^th Cir. 1997) (Eighth Circuit affirmed use of protective order for summonses relating to tax-preparation software; Congress subsequently amended Code to add special procedures for software)

State Cases

• HMN Financial, Inc. v. Commissioner of Revenue, 782 N.W.2d 558 (Minn. 2010) (Minnesota Supreme Court agreed with client that economic substance doctrine could not be used to override statutory tax benefits flowing from captive REIT structure)
• Manpower, Inc. v. Commissioner of Revenue, 724 N.W.2d 526 (Minn. 2006) (Minnesota Supreme Court agreed with client's position that French SARL was a foreign eligible entity)
• Hutchinson Technology, Inc. v. Commissioner of Revenue, 698 N.W.2d 1 (Minn. 2005) (Minnesota Supreme Court held that client's foreign sales corporation also qualified as a foreign operating company under Minnesota law; cost to state of paying refunds estimated to exceed $400 million).
• Cambridge State Bank, et al. v. Commissioner of Revenue, 514 N.W.2d 565 (Minn. 1994) (Minnesota Supreme Court held that State law discriminated against federal obligations; cost to state of paying refunds estimated to exceed $300 million)
• BCBSM, Inc. (d.b.a. BlueCross BlueShield of Minnesota) v. Commissioner of Revenue, 663 N.W. 2d 531 (Minn. 2003) (Minnesota Supreme Court held that premiums on stop-loss reinsurance were not subject to premium tax).
• Wells Fargo & Company v. Commissioner of Revenue, No. 7429R (Mn. Tax Ct. 2002) (court granted writ of mandamus to compel a refund)
• Eveleth Taconite Company v. Commissioner of Revenue, Nos. 6951, 7054 (Mn. Tax Ct. 1998) (court held that client's equipment qualified for sales tax exemption; cost to state of paying refunds estimated to exceed $21 million)

Pro Bono

Honors

Professional Associations

Civic Activities

• Open Eye Figure Theater Board

Presentations

• Economic Substance in State Taxation
  Minnesota Bar Association (2010)
• Privileges in Tax Practice
  Minnesota Society of CPAs (2010)
• Privileges Post-Textron: Is There Anything Left?
  Minnesota Bar Association (2009)
• Is There a Privilege for FIN 48 Workpapers
  Tax Executives Institute (2007)
• Privileges in Tax Controversies
  Multistate Tax Commission (2007)
• Tax Ethics - Recent Developments
  Minnesota Bar Association (2007)
• FIN 48 Compliance: Are You Ready?
  Strafford Publications Seminars (2007)
• IRS Access to FIN 48 Workpapers
  Strafford Publications Seminars (2006)

Legal Updates

• General Editor, LexisNexis Practice Insights (Minnesota)
• Corporate Tax Advisory Board, Strafford Publications