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Experience:
Daniel Dumezich represents taxpayers - including major international financial institutions and public accounting firms - in tax controversies before the Internal Revenue Service and various state taxing authorities. In the past three years, he has represented corporate and individual taxpayers in matters under IRS Examination or in IRS Appeals exceeding $4 billion in proposed adjustments. In one recent matter, he represented over 780 former partners of a large professional firm, from whom the IRS sought over $450 million in additional taxes. The matter was settled for payment of approximately 5 percent of that amount.
With an active practice in US Tax Court, Daniel has tried cases involving § 482 reallocations and Subpart F Issues under the Internal Revenue Code. He has also tried matters involving the deductibility of interest expense relating to a debt versus equity characterization, a debt-equity swap, and capitalization versus current deductibility of expenditures. Acquisition-related issues that he has tried encompass valuation of assets, tax-advantaged financial products, and structured transactions. Daniel has secured successful results for clients when settling cases, as well as litigating them to a court's final decision. He settled one recent matter, which involved a claimed deficiency of over $100 million, for slightly more than $1 million.
A Certified Public Accountant, Daniel was a tax specialist with a major accounting firm before joining Mayer Brown in 1988. He currently serves on the Chicago-Kent Federal Income Tax Institute Advisory Board and is a member of The American Association Of Attorney-CPAs.
Notable Engagements:
Represented over 780 former partners of a large professional firm ("the Coalition members"), in an audit and appeals matter in which the IRS disallowed ordinary loss claims with respect to the capital accounts of the Coalition members. As a result the IRS challenged the Coalition members' losses for both federal income tax and self-employment tax purposes, claiming proposed adjustments of over $450 million for the group. The matter was settled in 2007 solely for the self-employment tax of approximately $23 million.
Represented Van Der Aa Investments, Inc. when the IRS assessed tax deficiencies of over $62 million and $15 million in penalties related to built-in gains for its tax year ending December 30, 1999. Including interest, the total deficiency amounted to over 100 million dollars. The case settled before trial in 2006 for a total of $1.05 million.
Other tax cases include:
Van Der Aa Investments, Inc., a Dissolved Delaware Corporation Terry L. Van Der Aa, Trustee v. Commissioner of Internal Revenue, 125 T.C. No. 1 (2005) (admissibility of certain business records as acceptable hearsay).
Neal M. Douglas et al. v. United States of America, No. M8-85 (S.D. N.Y. filed November 7, 2005) (intervention on behalf of 11 third party taxpayers; appeal of Motion to Quash under Right to Financial Privacy Act).
Tribune Company v. Commissioner of Internal Revenue, 125 T.C. 110 (2005), (holding that the divestiture of Bender was a taxable sale and not a tax-free reorganization).
United States of America v. Arthur Andersen, LLP , 93 AFTR 2d 2004-703 (September 26, 2002) (intervention on behalf of 34 third-party taxpayers; Motion to Quash summons).
Saba Partnership, Brunswick Corporation, Tax Matters Partner, et al. v. Commissioner of Internal Revenue, 78 T.C.M. (CCH) 684 (1999), vacated by 273 F.3d 1135 (D.C. Cir. 2001), remanded to 85 T.C.M. (CCH) 817 (2003) (challenge to investment partnerships as devoid of economic substance).
The Limited, Inc. v. Commissioner of Internal Revenue, 286 F.3d 324 (6th Cir. 2002), rev'g, 113 T.C. 169 (1999) (reversing the Tax Court's holding that CFC's purchase of CDs from affiliated credit card bank failed to qualify as § 956(b)(2)(A) "deposits with [a] person carrying on banking business." )
United Parcel Service of America v. Commissioner of Internal Revenue, 254 F.3d 1014 (11th Cir. 2001), rev'g and remanding, T.C. Memo. 1999-268, 78 T.C.M. (CCH) 262 (1999) (vacating Tax Court's finding on sham, assignment of income and penalties).
Comcast Corporation v. Commissioner of Internal Revenue, T.C. Docket No. 10983-99, decision entered March 17, 2000 (application of I.R.C. § 83 to warrants issued in public LBO).
TCI Communications, Inc. v. Commissioner of Internal Revenue, T.C. Docket Nos. 18317?95, 22785-95, decision entered November 7, 1997 (application of investment tax credit transitional rules; proper treatment of Make Ready costs; and amortization of intangible assets).
WestMarc Communications, Inc. v. Commissioner of Internal Revenue, T.C. Docket No. 22433-94, decision entered January 22, 1997 (application of investment tax credit transition rules).
Tele-Communications, Inc. v. Commissioner of Internal Revenue, T.C. Docket No. 25598-92, decision entered December 18, 1997 (proper treatment of Make Ready costs).
Norwest Corporation and Subsidiaries v. Commissioner of Internal Revenue, 108 T.C. 358 (1997) (debt-equity swap, asbestos removal expense, and lease portfolio valuation).
Overseas Partners Ltd. v. Commissioner of Internal Revenue, T.C. Docket No. 15966-95 (engaged in business issues arising under I.R.C. §§ 882 and 842) (conceded by IRS).
Nestlé Holdings, Inc. v. Commissioner of Internal Revenue, 70 T.C.M. (CCH) 682 (1995) (I.R.C. § 482 reallocations, Carnation acquisition).
National Semiconductor Corporation v. Commissioner of Internal Revenue, 67 T.C.M. (CCH) 2849 (1994), acq. in result, 1995-2 C.B. 1 (I.R.C. § 482 reallocations).
Westreco, Inc. (Nestlé) v. Commissioner of Internal Revenue, T.C. Memo 1992-561, 64 T.C.M. (CCH) 849 (1992) (I.R.C. § 482 reallocations).
Rowntree Holdings, Inc. v. Commissioner of Internal Revenue, T.C. Docket No. 27313-90, decision entered August 13, 1992 (acquisition issues related to the purchase of Sunmark).
Rowntree Holdings, Inc. v. Commissioner of Internal Revenue, T.C. Docket No. 28066-89, decision entered August 13, 1992 (acquisition issues related to the purchase of Tom's Foods).
Education:
The John Marshall Law School, JD, with highest distinction, 1989; Law Review, DePaul University, MST, 1985, Passed the Certified Public Accounting Exam, Indiana, 1983, Western Michigan University, BBA, 1982. |
