Michael J. Grace joins Whiteford’s tax practice


Washington, D.C. Whiteford Taylor & Preston is pleased to announce Michael J. Grace joined the firm’s tax group and will be based in the Washington office.

“We are delighted to welcome Michael to the firm,” Martin Fletcher, the firm’s managing partner, said. “He is a superb addition to our business and tax practices. His experience will be very beneficial to our clients.”

Both a lawyer and a CPA, Grace offers clients more than 30 years of experience practicing tax law. He has represented clients in a broad range of tax transactional, planning and controversy matters. Along the way, Grace has attained a national reputation for his leading experience in the taxation of partnerships, limited liability companies, S corporations, other passthrough entities and their owners.

“I sought an opportunity to expand my passions for representing clients in business transactions and tax controversies including those involving partnership tax. Whiteford has welcomed me with both a compelling need for my expertise and a positive, enthusiastic team-oriented approach to practice development,” Grace said.

Before entering law school, Grace earned his B.S. in accountancy from the University of Illinois of Urbana-Champaign, passed the Uniform CPA Examination and worked in public accounting as an auditor. After earning his J.D. from the University of Michigan Law School, he began his legal career analyzing tax issues, assisting other lawyers with tax audits, appeals, and litigation, and structuring public and private partnership tax shelters. He then served in the Internal Revenue Service Office of Chief Counsel (National Office) in Washington, D.C., initially with the former legislation and regulations Division (“L and R”) and then with Associate Chief Counsel (passthroughs and special industries). During the development of what became the Tax Reform Act of 1986, Grace represented the IRS in legislatively drafting the limitations on passive activity losses and credits and associated rules targeting broadly marketed tax shelters. He then served as principal author of regulations, notices and other pronouncements interpreting and administratively implementing the passive activity limitations (Internal Revenue Code Section 469).

Since resuming private law practice in 1991, Grace has represented clients in various examinations, appeals and trials of tax controversies. For example, he served as special tax counsel to the successful taxpayers in litigation allowing them to combine into one “activity” numerous real estate partnerships and a captive management operation. Glick v. United States, 96 F. Supp. 2d 850 (2000).

Recently, Grace testified before the IRS on proposed regulations interpreting the 3.8 percent Medicare Contribution Tax on Net Investment Income. Codified in Section 1411 of the Internal Revenue Code, this surtax draws heavily upon the passive activity regulations Grace played a key role in developing.

The 160 attorneys at the 80-year-old Whiteford, Taylor & Preston are dedicated to helping our clients grow their businesses through strategic legal counsel. We serve our clients in the region, across the nation and around the globe from our base of nine offices in Maryland, Delaware, Michigan, Washington, D.C. and Virginia.

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