Wells Fargo & Co. is suing one of its largest shareholders: The U.S. government.
The bank filed a lawsuit Monday demanding the return of $162.3 million in income taxes that it says were "erroneously and illegally assessed," by the federal government in 2003.
Wells Fargo contends, in part, that the Internal Revenue Service erred when it disallowed a $73 million deduction for California franchise taxes. The bank also said it overpaid taxes in connection with a series of sale leaseback transactions involving metropolitan transit properties.
The suit, filed in U.S. District Court in Minneapolis, details a series of complicated deals involving obscure Wells Fargo entities, some created for tax purposes, with names like Carnation Asset Management Inc., Rigil Finance and Sirius LLC.
Wells Fargo has yet to repay $25 billion in taxpayer bailout money that it received last fall. The bank is in effect asking for more money, this time in the form of tax refunds.
In the lawsuit, the bank describes Minneapolis as its "principal office," and the proper venue for filing the lawsuit.
Chris Serres • 612-673-4308
