On May 17, 2024, David J. Warner, Shareholder and Tax Attorney with Holtz, Slavett & Drabkin, won a complete victory in the United States District Court case of United States v. Denise Dimacale et al. – case number 2:21-cv-06012-CBM-RAOx in the U.S. District Court for the Central District of California. This case involved a one-day bench trial before U.S. District Court Judge Consuelo B. Marshall.
In this case, an individual taxpayer owed unpaid taxes to the Internal Revenue Service (IRS). The individual also was the grantor of a trust that met the terms of a Qualified Personal Residence Trust (QPRT) under Treas. Reg. § 25.2702-5(c). The IRS and Department of Justice (DOJ) sought to collect the unpaid taxes by selling the real property owned by the QPRT. The IRS and DOJ alleged that the QPRT was the nominee of the individual taxpayer or that there was a fraudulent transfer (sometimes referred to as a fraudulent conveyance or a voidable transfer) involving the real property in the QPRT.
David J. Warner represented the trustee and beneficiary of the QPRT in a case that involved extensive discovery, pretrial motions, pretrial briefing, and a one-day bench trial. In her detailed order, Judge Marshall determined that the trust at issue in this case qualified as a QPRT and that the government had not met its burden to prove that there was a nominee situation or a fraudulent transfer. Thus, the individual taxpayer, the trustee, and the beneficiary all won in full.
Click Here for the U.S. District Court’s Post-Trial Order
David J. Warner is a Shareholder and the managing principal of the firm’s Orange County office. David practices in all aspects of tax controversy including tax audits, collection defense, and tax litigation. David has extensive trial experience, including a 2-week trial in U.S. Tax Court and other recent trials in both U.S. Tax Court and U.S. District Court. Before joining Holtz, Slavett & Drabkin, David was a Senior Trial Attorney with the IRS Office of Chief Counsel in Laguna Niguel for 9 years. As an IRS attorney, he handled over 500 cases before the U.S. Tax Court, including the most complex domestic and international cases. David was an Adjunct Professor of Law at University of California Irvine School of Law, Chapman University Fowler School of Law, and Loyola Law School, where he taught courses on tax practice and procedure, partnership tax, bankruptcy tax, and corporate tax.
Holtz, Slavett & Drabkin, APLC is a tax controversy and tax litigation law firm consisting of former IRS trial attorneys. We represent taxpayers in all aspects of tax disputes with the IRS and state tax authorities, including complex tax litigation in U.S. Tax Court and U.S. district court and matters involving civil and criminal fraud. To schedule a consultation, please contact us at (310) 550-6200 or (949) 999-6606.