David Dung Le, M.D., Inc. - Page 1

                                   114 T.C. No. 18                                    

                               UNITED STATES TAX COURT                                

                    DAVID DUNG LE, M.D., INC., Petitioner v.                          
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 13702-99.                   Filed April 18, 2000.           

                    R moves the Court to dismiss this case for lack of                
               jurisdiction, alleging that P, a corporation organized                 
               under California law, lacked the capacity to file the                  
               petition instituting this action.  On Apr. 1, 1991, the                
               State of California Franchise Tax Board (the Board)                    
               suspended P’s corporate powers, rights, and privileges                 
               for failure to pay State income taxes, and the Board                   
               did not relieve P of that suspension until (and                        
               effective) Feb. 28, 2000.  R issued P a notice of                      
               deficiency on July 1, 1999, and P filed the subject                    
               petition with the Court on Aug. 12, 1999.                              
                    Held:  We shall grant R’s motion; under applicable                
               State law:  (1) P lacked the power to initiate a                       
               lawsuit during the time it was suspended, and (2) that                 
               power was not returned to P until after the applicable                 
               90-day period in which it was required to file a                       
               petition with this Court.                                              

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