- 23 - 2002, respondent issued a separate notice of deficiency for 1997 and 1998. In the notices of deficiency, respondent increased petitioner’s Schedule C income and expenses by the amounts reported on the McKenzie Trust’s tax returns, increased the Gouveias’ Schedule E rental income and expenses by the amounts reported on the Pago Trust’s tax returns,21 and increased the Gouveias’ capital gain and interest income by the Pago Trust’s capital gain and interest income. OPINION I. Motions To Dismiss for Lack of Jurisdiction Rule 60(a)(1) provides that “A case shall be brought by and in the name of the person against whom the Commissioner determined the deficiency * * * and with the full descriptive name of the fiduciary entitled to institute a case on behalf of such person.” Rule 60(c) further provides that “The capacity of a fiduciary or other representative to litigate in the Court shall be determined in accordance with the law of the jurisdiction from which such person’s authority is derived.” Under California law, a trustee is entitled to institute legal proceedings on behalf of a trust. Cal. Prob. Code sec. 16249 (West Supp. 2004). 21Respondent did not increase the Gouveias’ Schedule E expenses for 1997 by the amount of management fees reported on the Pago Trust’s 1997 tax return.Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Next
Last modified: May 25, 2011