First Admitted: 1979, California

Professional Webpage: https://www.kfbrice.com/attorneys/david-l-rice/

Bar/Professional Activity:

U.S. Tax Court, 1980
Los Angeles County Bar, Former Chair Tax Section
American Bar Association, Former Chair of Income and Family Tax Committee
California, 1979
Supreme Court of California, 1979
U.S. Court of Federal Claims, 1980
Former Chair, State Board of Legal Specialization Tax Section
U.S. Court of Appeals 9th Circuit, 1980
U.S. Federal Courts, 1980
U.S. Supreme Court, 2006
Cross Border Divorces - A Trip Through Alice's Looking Glass This seminar discusses the various tax issues that arise with cross-border divorces. Were you aware that London is the divorce capitol of the world?, 2022
Collection Due Process Hearings - What Every Practitioner Needs to Know., 2022
COVID - 19 This seminar discusses the current state and trends in IRS Collection procedures during the pandemic., 2021
AB 150 California's Answer to SALT Limitations. This program discusses the various ways to get around the SALT limitations under Federal and State law., 2021
Community Property - The Rules and Their Impact on Income Tax and Estate Tax return reporting., 2020
Collection, Payroll Taxes, and Criminal Investigation Division This seminar covered Employment taxes and how to avoid criminal prosecution., 2020
Special Needs Trusts This seminar covered the use of Special Needs Trust and whether one is needed. The seminar also covered the use of ABLE accounts and how to integrate them with Special Needs Trust., 2020
Getting It Right: Dealing with Foreign Tax Issues (Cal Society of CPAS), 2018
Seminar - Getting it Right: Dealing with Foreign Tax Issues (Cal Society of CPAs), 2018
Admitted to American College of Tax Counsel., 2017
American Bar Association - Chair of the Individual and Family Law Section., 2010
Beverly Hills Bar Association
South Bay Estate Planning Council
Former Chair, Beverly Hills Bar Association, Tax Section
Former Chair, State Bar Tax Procedure and Litigation Committee
South Bay Bar Association
Former Chair, State Bar Income Tax Committee
Los Angeles County Bar Association
Former Director, Board of Directors, Fibromyalgia Treatment Center

Verdicts/Settlements (Case Results):

Settled Partnership Tax Case for MMA-TapouT with the IRS. IRS asserted $35,038,798 in net gain from 4797 and settled with IRS for $13,632,837. Additionally, the IRS agreed that all of the gains would be treated as capital gain, instead of taxing $8,047,860 as ordinary income. The IRS reversed its decision and allowed in full $1,262,326 in depreciation. The accuracy-related penalty of 20% was abated., 2018
Marital Deduction Clauses in Estate Drafting This seminar covered the various ways of using a martial deduction in estate planning, including the use of a pecuniary versus a fractional bequest., 2019
Caretacker Contracts Tax and Medi-Cal Planning for Caretaker Contracts., 2019
Divorce and Taxation and the Innocent Spouse (Orange County Bar Association - Family Law Section, 2018
The client was assessed over $100,000 in taxes, interest, and penalties for relief of liabilities. IRS granted us a reaudit and reduced the tax obligation to $0., 2017
Settled a Tax Court case where the assessed amount was over $1,500,000 for $18,000., 2012
Won an innocent spouse case for Mary Brown resulting in the relief of over $40,000,000 in tax liabilities., 2017
The firm just won an innocent spouse case relieving a spouse of over $3,000,000 in liabilities. Settled a case with penalties that approached $50,000 for less than $3,000. On a recent panel at the annual ABA meeting in May, I spoke on the alter-ego/nominee lien and the lack of due process. It is my understanding that TAS is now looking at this area seriously with the intent on making recommendations to the IRS in implementing some modicum of due process.
Client owed the IRS in excess of $2,000,000. Settled the case with the IRS for $400,000 though and Offer in Compromise.
The appeal of Donald Finch II. The client had a website that dealt with diabetes and allowed individuals and their caregivers to communicate with each other regarding their illness and treatments. A small part of the website allowed individuals to get advice from physicians. The Company was sold for millions of dollars and California denied the client the ability to pay tax as if the business were classified as a qualified small business stock. The FTB caved in and dismissed the case after we filed our initial brief in the matter. , 2017
In addtion to handling tax audits and tax litigation, our firm also handles numerous collection matters and can properly advise the taxpayer on the best way to resolve his or her tax issues with the tax agency in question. Our firm also handles probates, estate planning and elder law matters, including Medi-Cal planning and financial Elder Abuse cases. In a recent Elder Abuse case, an elderly client was induced to sell her property for $300,000. Our firm realized that the elderly client had been taken advantage of and settled the case to $2,700,000. , 2006
The client was assessed over approximately $400,000 in taxes, interest, and penalties. I settled the case for $11,000., 2016
Hlavacek vs. United States - The IRS assessed an additional $20,000,000 againt the taxpayer contending that the taxpayer had to recognize income equal to the amount of the issue price of the debt instrument which is the face amount of the promissory note. We filed an action in the Court of Claims and the IRS conceded the case prior to judgment, thereby in essence agreeing that the Treasury Regulation was questionable at best. , 2015
Client assessed over $1,000,000 in additional income and settled case for $0.
Resolved taxpayer dispute with the Franchise Tax Board. The FTB proposed an assessment of $1,300,000, which was settled for $250,000.

Representative Clients:

SBE Entertainment Beats Entertainment LEDtronics Cisco Corporation
Resolved numerous tax collection cases through non-collectible status, installment agreements, and Offers in Compromise.
Tri City Models, Inc., 2018
Calpiping Industrial, LLC
SBE Entertainment Hlavacek Enterprises CalPipping Balian Markets Pilgrim Entertainment Farmers & Merchants Trust Company McNearny's Mortuary Dr. Patricia Sacks Cisco Corporation Wells Fargo Bank NA Bonnie Hanna Mickey Rooney (deceased)

Transactions:

Client assessed over $1,600,000 in taxes. Settled the case in tax court for $13,000.
Velur Enterprises

Special Licenses/Certifications:

Certified Elder Law Specialist by the National Academy of Elder Law Attorneys, 2005
Certified Specialist in Taxation by the State Bar of California. Certified Elder Law Specialist by the National Academy of Elder Law Attorneys, 1990

Educational Background:

The University of San Diego - Awarded L.L.M. in Taxation, Honors: Deans List all years, 1988
Arizona State University, Bachelor of Arts in Economics, Graduated Summa Cum Laude and Phi Beta Kappa, Honors: Dean’s List, 1974

White Papers:

This whitepaper focuses in on the limitations of Section 104(a)(2)., Comments on Limitation of Section 104(a)(2) Exclusion, 2012

Scholarly Lectures/Writings:

Quandary at National Health Company, International Research Journal of Applied Finances, 2013
Professor, Accounting & Business Department: Cal Poly Pomona, CA
Taxation of Domestic Partnership and Same Sex Couples, California State Bar
Tax Consequences of Short Sale and Foreclosures, California Polytechnic University
Income Tax Planning for Disabled Clients, American Bar Association
Ethical Consideration in Advising Same Sex Couples, American Bar Association
Income Tax Consequences for Caregivers, National Academy of Elter Law Attorneys, 2006
Is it De Jevu All Over Again- The Need for New Legislation, UCLA Annual Tax Controversy Institute, Innocent Spouse: Eight Years Later, 2006
The Ethics of Fraudulent Conveyance: What Every Tax Lawyer Must Know, Annual Meeting California Tax Bar and the California Tax Policy Conference, 2006
Tax Collection Procedures: Money Still Talks, CCH Tax Practice & Producer, 2007
Elder Law and the Tax Practitioner- How to Navigate the Murky Waters, Tax Development Journal, Volume II, 2011
The Kinder and Gentler IRS is Targeting E File Practitioners- Are You Compliance?, CCH Tax Practice & Producer, 2011
Taxation of Special Needs Trust, CEB- Special Needs Trust, 2013
Mr. Rice has published numerous articles inlcuding, but not limted to the following:1. Elder Law and the Tax Practitioner How to Navigate the Murky Waters Tax Development Journal. Volume 2, Spring 2011;
It is important for every tax practitioner to understand the State Property laws to properly advise clients on tax planning, estate planning and tax controversy matters. Federal tax law has always deferred to State laws to determine the character and nature of property.1 This article will focus on the California Community Property Laws., Co-Author, Community Property - The Rules and Their Impact on Income Tax and Estate Tax Return Reporting, Tax Law, Family Law, Estate Planning, Trust Administration, 2017
Co-Author of Capital Gains Planning After 2008, Matthew Bender (USC Tax Institute).
The Ethics of Fraudulent Conveyance: What Every Tax Lawyer Must Know. 2006 California Tax Bar and the California Tax Policy Conference.
Co-Author of Desperate Spouses - What Every Tax Practitioner Needs to Know About Fraudulent Conveyances and States' Property Rights to Protect the Innocent Spouse. Matthew Bender USC Tax Institute 2007.
Is a Worker and Employee or Independent Contractor? California Tax Bar and California Tax Policy Conference 2010.
Divorce and Registered Domestic Partner Dissolutions - A Reminder that Hisotry Does Indeed Repeast Itself. American Bar Association Annual Meeting, May 2011.
Encouraging The Fair Treatment of Emotional Distress Damage Awards, American Bar Association Annual Meeting, May 2010.
Innocent Spouse From the Front Lines. American Bar Assocation Winter Meeting 2010.
Papers presented to the Internal Revenue Service, Department of Treasury, United States Senate and House Ways and Meand Committee: A. IRC Section 213 - the Medical Deduction: A Need for Statutory Reform. B. Proposed Amendment to IRC Sections 1034 and 6013 (May 1993) C. Propsed Amendment to Section 1034 of the Internal Revenue Code (May 1994) D. Comment to the Proposed Treasury Regulations Addting Section 1.664-4(c)(3)(iii) and 1.664-4(c)(2). E. Comments to Proposed Amendments to Circular 230 (May of 2005 and May of 2006) F. Proposed Regulations of the Accuracy Related Penalty (May 2002).
Califonria Tax Lawyer, Spring 2008(Vol 17, No2) "Long Term Expenses and the Medical Deduction - the Need for Regulatory Reform"
RIA Journal of Taxation (August 2003) - IRS and the Courts Provide Guidance for Taxapyers Seeking Relief as an Innocent Spouse.
California Tax Lawyer, Winter 2005, "Tax Defense Protection Strategies - Whay Can the Tax Practitoner Legally Advise?"
Los Angeles Lawyer, March 2005, "Protecting the Innocent"
RIA Estate Planning Journal, August 2003, "Fraudulent Transfers - New Developments Affect the Statutes of Limitations for Fraudulent Transfers."
ABA, Family Law Advocate - "Planning for Innocent Spouse in Divorce" Fall 1995.
National Academy of Elder Law Attorneys (April 2006), "Tax Consequences of Caregiver Contracts."
The IRS has been audited tax practitioners who e-file returns and has been discplining some of them for violations that the IRS has been less than transparent on. This article focuses in on the areas the IRS is looking at and what the Practitioner should be aware of when an audit does take place., Co-Author, The Kindler and Gentler IRS is Targeting E-File Practitioners - Are you in Compliance?, CCH - Journal of Tax Practice & Procedure, 2011

Other Outstanding Achievements:

Admitted to the American College of Tax Counsel (approximately 700 tax attorneys have been accepted), 2017

Industry Groups:

Entertainment
High Wealth Individuals
Industrial
International Estate Planning
IRS and FTB Penalty Abatement
Medi-Cal Planning
Real Estate
Real Estate Development
Technology
Transportation

David Lee Rice