Rob Walton

Of Counsel

About

Areas of FocusTax Tax Controversy and Disputes International Tax and Structuring Transfer Pricing and Valuation

Bar admissionsIllinois

CourtsSupreme Court of IllinoisSupreme Court of the United StatesUnited States Court of Appeals for the First CircuitUnited States Court of Appeals for the Second CircuitUnited States Court of Appeals for the Sixth CircuitUnited States Court of Appeals for the Ninth CircuitUnited States Court of Appeals for the District of Columbia CircuitUnited States Court of Appeals for the Federal CircuitUnited States Tax CourtUnited States District Court for the Northern District of Illinois

EXPERIENCE

Rob has participated in many Appeals cases and supported taxpayers in a number of administrative audits. Representative issues include:

Corporate reorganization issues under subchapter C
Corporate structured tax advantage transactions
Debt-equity issues
Employment tax issues
Partnership issues including validity of the partnership, treatment of distributions, debt-equity issues, partnership allocations, and potential partnership ant-abuse issues
Repatriation transactions
State tax matters involving transfer pricing and unitary business determinations
Statute of limitations and other procedural issues

Public case examples include the following tax court trial experience:

Facebook, Inc. v. Commissioner, T.C. Dkt. 21959-19, valuation of PCT transaction for a cost sharing arrangement: valuation of PCT transaction for a cost sharing arrangement.
Managed accounting expert who testified at trial. Assisted in developing direct and cross examination of economics and valuation expert testimony.
Medtronic, Inc. v. Commissioner, T.C. Memo. 2016-112 (2016): whether intercompany transactions between a U.S. company and its foreign subsidiaries are arm's length under I.R.C. § 482; whether the taxpayer is entitled to an I.R.C. § 965 dividends received deduction; and whether the taxpayer is entitled to a legal settlement expense deduction; vacated and remanded 900 F.3d 610 (8th Cir. 2018).
Medtronic, Inc. v. Commissioner, U.S. Tax Court, Docket No. 17488-08: whether the buy-in payment for certain intangibles, cost sharing and intercompany transfers between a U.S. company and foreign subsidiaries were arm's length under I.R.C. § 482. (Settled).
Compaq Computer Corp. v. Commissioner, 113 T.C. 214 (1999), rev'd, 277 F.3d 778 (5th Cir. 2001): whether taxpayer was entitled to foreign tax credits attributable to American Depository Rights purchased dividend "cum dividend" and sold dividend "ex dividend;" whether taxpayer subject to accuracy-related penalty under I.R.C. § 6662(a).
Compaq Computer Corp. v. Commissioner, 78 T.C.M. (CCH) 20 (1999): whether prices charged by Singapore affiliate for printed circuit boards were arm's length under I.R.C. § 482:
Summa Holdings, Inc. v. Commissioner, U.S. Tax Court, Docket No. 26476-12: whether under substance-over-form principles otherwise qualified DISC commissions are disallowed solely because the indirect owner of the DISC is a Roth IRA. T.C. Memo. 2015-119 (in favor of the IRS), rev'd 848 F.3d 779 (6th Cir. 2017), rev'd sub nom. Benenson v. Commissioner, 910 F.3d 690 (2d Cir. 2018), and rev'd sub nom. Benenson v. Commissioner, 887 F.3d 511 (1st Cir. 2018).
Hellweg v. Commissioner, 101 T.C.M. (CCH) 126 (2011): whether DISC distributions to taxpayers' individual retirement accounts were excess contributions subject to excise taxes under I.R.C. § 4973; whether taxpayers were subject to accuracy-related penalties and additions to tax under I.R.C. § 6662(a)(1) for failing to file information returns.
Ohsman v. Commissioner, 101 T.C.M. (CCH) 1471 (2011): whether FSC distributions to taxpayers' individual retirement accounts were excess contributions subject to excise taxes under I.R.C. § 4973; whether taxpayers were subject to additions to tax under I.R.C. § 6651(a)(1) for failing to file information returns.
Seagate Tech., Inc. v. Commissioner, 80 T.C.M. (CCH) 912 (2000): whether as a matter of law value of stock options granted to, or exercised by, employees must be included in the cost sharing pool under I.R.C. § 482.

Other Court Experience

Pfizer Inc. v. U.S., 149 Fed. Cl. 711 (2020), prior history includes 939 F.3d 173 (2d Cir. 2019) whether interest is due on six lost refund checks. Argued the motions in district court to dismiss the case on multiple grounds. Argued the Second Circuit appeal. Argued the summary judgment motion in the Court of Federal Claims. Argued the mediation that led to settlement of the case.
Abbott Laboratories v. U.S., 573 F.3d 1327, (Fed. Cir. 2009) aff'g 84 Fed. Cl. 96 (2008). Statute of limitations issue between a foreign sales corporation (FSC) and parent company for a redetermination of FSC commissions. Second chair in drafting summary judgment and appellate briefs. Participated in preparation for both oral arguments.
Aeroquip-Vickers, Inc. v. Commissioner, 347 F.3d 173 (6th Cir. 2003), reversing Trinova Corp. v. Commissioner, 108 T.C. 68 (1997): whether the Tax Court gave proper deference to a revenue ruling for purpose of assessing a taxpayer's investment tax recapture obligations. Second chair on appellate briefing and oral argument, including filing petition for certiorari.
Jefferson Smurfit Corporation v. United States, Dkt. No. 4:03-cv-01691 (E.D. Mo.), rev'd 439 F.3d 448 (8th Cir. 2006): Eastern District of Missouri refund action on the applicability of res judicata to a Tax Court decision. Successfully argued summary judgment in district court—overturned on appeal.

Education

J.D., Harvard University

B.S., University of Illinois

Pro Bono