Adam S. Fayne

Partner

Adam S. Fayne is a partner in the firm’s tax , bankruptcy, and white collar criminal practice groups in the Chicago office.

Mr. Fayne’s practice focuses in the areas of tax controversy, tax planning, white collar criminal, and bankruptcy. As a tax attorney, he frequently represents businesses and individuals before the Internal Revenue Service, and he also advises individuals and businesses as to tax planning matters. As part of his tax practice, Mr. Fayne has also handled a variety of white collar criminal matters; including tax evasion, money laundering, offshore tax compliance, and all areas of civil and criminal tax fraud. Mr. Fayne also represents individuals and businesses in insolvency matters; including bankruptcy, workouts, and receivership.

Mr. Fayne is a former special assistant United States attorney with the Department of Treasury Internal Revenue Service (IRS), where he gained extensive knowledge in all areas of tax law and bankruptcy matters.

Professional Activities and Achievements
During 2011, Mr. Fayne was recognized as a Rising Star by the publication Super Lawyers. Super Lawyers awards this distinction to the top 2.5% of lawyers under the age of forty (40). Mr. Fayne is an active member of the Chicago Bar Association and the American Bar Association. He is also a member of the Jewish Federations of North America National Young Leadership Cabinet.

Notable Cases
Beard v. Commissioner, T.C. Memo 2009-184 (2009).  Mr. Fayne successfully litigated this multi-million dollar proposed tax deficiency.  The Internal Revenue Service asserted that the six (6) year extended statute of limitations period applied to the taxpayer’s alleged overstatement of basis in his partnership interest.  Mr. Fayne filed a Motion for Summary Judgment arguing that the extended statute of limitations period did not apply based on an earlier Supreme Court case.  The Internal Revenue Service alleged that an inflated basis of stock was the same as an omission of gross income.  The Tax Court agreed with Mr. Fayne that an overstatement of basis in partnership stock is not the same as an omission of gross income and issued summary judgment in favor of his client and against the Internal Revenue Service.

IRS Off-Shore Compliance.  Mr. Fayne is currently advising clients from across the nation, and internationally, regarding the IRS Voluntary Disclosure process.  Mr. Fayne has a broad range of experience that allows him to successfully advise clients who have a beneficial ownership interest in off-shore bank accounts.

Mr. Fayne has successfully litigated and obtained State Sales Tax Exemptions for several Not-For-Profit organizations.  In addition to obtaining 501(c)(3) status with the Internal Revenue Service for exempt organizations, Mr. Fayne also specializes in obtaining Sales Tax Exemptions for such organizations.

Mr. Fayne successfully litigated a $61 million IRS adjustment which led to a full concession by the Internal Revenue Service. The dispute centered around the client’s residency status during certain tax years, where the client claimed residency in the Commonwealth of Northern Mariana Islands (CNMI), but the Internal Revenue Service failed to recognize the legitimacy of that residency. Mr. Fayne litigated the client’s position through the United States Tax Court and under provisions for United States Competent Authority. After litigating, and working in conjunction with the CNMI government, the client’s ultimate result was that no taxes were due to the United States, and the Internal Revenue Service conceded its tax court case in full, which led to a $61 million reduction that was originally alleged to be due from the client.

Audits, Offers In Compromise, Payment Arrangements.  Mr. Fayne counsels individuals and entities under audit with the Internal Revenue Service (IRS) and state taxing authorities.  Mr. Fayne also works with clients in obtaining favorable payment arrangements through Offers In Compromise and Installment Agreements.

Recent Publications

Education
Chicago-Kent College of Law (J.D. with honors, 2003)
University of Arizona (B.A., 1999)

Bar Admissions
State of Illinois
State of Florida
U.S. District Court, Northern District of Illinois
U.S. Tax Court