- 38 -
would be required to pursue petitioner as a transferee to collect
any deficiency that we might determine against INI. As we
observed in Great Falls Bonding Agency, Inc. v. Commissioner,
supra at 307:
Dismissal of the instant case for lack of jurisdiction
will not be the occasion for entry of a decision that
petitioner [INI] is liable for the determined
deficiencies. Sec. 7459(d). * * * [Petitioner] will
thus be free to litigate * * * [his] transferor’s
liability when * * * [and if his own case is] reached
for trial.
We shall continue to follow our longstanding rule, under which we
have consistently regarded corporate capacity as a jurisdictional
prerequisite. See Brannon’s of Shawnee, Inc. v. Commissioner,
supra at 114. We therefore grant respondent’s motion to dismiss
as to INI for lack of capacity. Because we lack jurisdiction
over INI, we do not decide INI’s liabilities for tax and
additions to tax.
To reflect the foregoing,
Decision will be entered
for respondent with respect to
petitioner A. Lee Petersen,
and an order of dismissal will
be issued with respect to
petitioner INI Builders, Inc.
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