MINNESOTA STATE TAX APPEAL LAWYER

Brad represents individuals and businesses in controversies with the Minnesota Department of Revenue, the state’s version of the IRS. The Department administers the State’s income tax for individuals and corporations. Although the computation of state income tax is largely dependent upon the IRS Code, the Department has independent authority to determine a Minnesota taxpayer’s state income tax liability. In addition, the Department determines whether individuals are Minnesota “residents,” and whether corporations have sufficient “nexus,” so as to be subject to Minnesota income tax.

 

The Department also enforces Minnesota’s sales and use taxes, tax types that have no analogue at the federal level. The Department has broad authority to audit Minnesota taxpayers for compliance with the State’s sales and use tax laws.  Finally, the Department enforces other tax types including Minnesota’s cigarette and tobacco taxes, its insurance taxes, and its petroleum tax.

 

As a Minnesota tax lawyer, Brad has successfully represented individuals and businesses in controversies involving all of these tax types.  Representative results include the following:

 

Officer Liability

• Department held Client personally liable for unpaid sales tax of business.  Brad discovered that Department had double-billed Client for one tax period (saving Client $155,000), and successfully proved that Department had improperly assessed Client for a separate period (saving Client an additional $147,000).

• Department held Client personally liable for $27,000 in unpaid sales tax of business. Brad proved that Client could not be held personally liable for unpaid tax, and Department withdrew personal liability assessment.

• Department held Client personally liable for $15,000 in unpaid sales tax of business. Brad proved that Client could not be held personally liable for unpaid tax, and Department withdrew personal liability assessment.

Residency

• Department determined that Client who had moved to another state, but who maintained non-trivial Minnesota contacts, remained a Minnesota resident for tax purposes. Department thus assessed Client approximately $300,000 in Minnesota individual income tax.  Brad negotiated a 50% settlement.

• Department determined that Client who had moved to another state remained a Minnesota resident and assessed Client approximately $150,000 in Minnesota individual income tax.  Brad established Client’s domicile in other state for the tax period in issue.  Department withdrew its assessment.

Sales Tax

• Department denied Client charitable youth athletic organization’s application for non-profit tax-exempt status.  Brad successfully appealed the denial, and Department granted Client requested tax-exempt status.

• Department assessed Client construction contractor $30,000 for failing to pay use tax on materials used to improve real property of tax-exempty entities, which could themselves have purchased materials tax-free.  Brad first negotiated a 25% reduction in the assessment, then helped Client successfully sue accountant for all funds paid to the Department.

• Department assessed construction contractor approximately $60,000 for technical use-tax violation. Brad persuaded Department to withdraw the assessment.

 

Whether you wish to file an administrative appeal within the Department of Revenue, or instead want to challenge an assessment in the Minnesota Tax Court, Brad can provide you with expert representation.

 

 

As an Assistant Minnesota Attorney General, Brad represented the Department of Revenue for seven years. As Manager of the Attorney General’s Tax Litigation Division from 2004 to 2007, Brad was Minnesota’s lead tax attorney. On behalf of the State, he litigated a wide variety of state tax issues including individual residency, corporate nexus, unitary determinations, foreign operating corporation issues, utility valuation, and a wide variety of sales and use tax issues.