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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.
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