Opinion
30258-21
04-26-2022
CHRISTINA AGNES STANLEY & TRAVIS LEE STANLEY, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
MAURICE B. FOLEY CHIEF JUDGE
On September 13, 2021, the petition in this case was filed. Among other things, that petition seeks review of the notice of deficiency dated June 7, 2021, issued to petitioners Christina Stanley and Travis Stanley for tax year 2018. That petition does not bear petitioner Travis Stanley's original signature or the original signature of a practitioner admitted to practice before the Court, as required by the Tax Court Rules. Rather, that petition was signed by Christina Stanley on behalf of petitioner Travis Stanley as his power of attorney.
The Tax Court is separate and independent from the Internal Revenue Service (IRS). The Court also does not recognize powers of attorney. For the Tax Court to acquire jurisdiction to consider a case on behalf of any taxpayer, the petition must be properly executed with an original signature by each petitioner or on his or her behalf by a representative with proper authorization and capacity pursuant to the Tax Court Rules of Practice and Procedure. In general, Rule 60(a) of the Tax Court Rules of Practice and Procedure directs that a case shall be brought by the individual against whom a deficiency or liability has been asserted or by a fiduciary legally authorized to institute a case on behalf of such person. The burden of proving that the Court has jurisdiction is on the taxpayer, and unless the petition is filed by the taxpayer or someone lawfully authorized to act on his or her behalf, the Court lacks jurisdiction. See Fehrs v. Commissioner, 65 T.C. 346, 348-349 (1975). Although the Court does not recognize powers of attorney, other procedures may be available to permit someone to act on behalf of petitioner in this Tax Court case. The Court has prepared Q&A's on the subject "Representing a Taxpayer Before the U.S. Tax Court. A copy of these Q&A's are attached to this order.
A fiduciary duly appointed under State law, such as a guardian or conservator, may bring a case in this Court. Rule 60(c), Tax Court Rules of Practice and Procedure. In the event an individual is duly appointed to serve as a conservator or guardian, that individual may file with the Court a Motion To Substitute Party and attach thereto, a copy of any documents providing proof of the appointment. In the alternative, Rule 60(d), Tax Court Rules of Practice and Procedure (available at www.ustaxcourt.gov), provides in relevant part that an incompetent person may prosecute a case in this Court through a duly appointed representative or by a "next friend" recognized by the Court. See Campos v. Commissioner, T.C. Memo. 2003-193. Before an individual may be recognized by the Court as "next friend" in this case, the individual must submit to the Court a Motion To Be Recognized as Next Friend reciting and explaining: (1) that petitioner cannot prosecute this case without assistance; (2) that individual would like to be recognized as petitioner's next friend, and the individual has a significant relationship with petitioner, and would represent petitioner's best interests; and (3) that there is no other person better suited to serve as next friend; and (4) a list of the names and addresses of persons (e.g., spouse, parent, children, or siblings) who may have an interest in this matter. A doctor's letter establishing that petitioner is incapable of managing his own business and financial affairs and showing that petitioner himself is not competent to prosecute this action would also be helpful.
Under the circumstances the Court will direct Christina Stanley to file a report concerning the present status of this case, including (1) whether petitioner is an incompetent person, (2) whether petitioner has a duly appointed fiduciary, such as a guardian or conservator, and (3) whether Mr. Stanley, or any other family member of petitioner would like to file a motion to have her/him recognized as next friend for Travis Stanley in this case.
Upon due consideration and for cause, it is ORDERED that, on or before June 24, 2022, petitioner Travis Stanley shall file a proper ratification of petition (see form attached) bearing his original signature (a "wet ink" signature not a photocopy). It is further
ORDERED that, if petitioner Travis Stanley is unable to file a ratification of petition, Christina Stanley shall file either a Response to this Order or a motion to be recognized as petitioner's next friend. If filing a response, Ms. Stanley shall advise the Court as to (a) whether petitioner is an incompetent person, (b) whether petitioner has a duly appointed legal representative, such as a guardian, conservator, or other similar fiduciary, and if not (c) whether Ms. Stanley or another individual intends to file an appropriate motion to have the Court recognize someone as next friend for petitioner. If filing a motion to be recognized as next friend for petitioner, any such motion shall include the required information discussed above. It is further
ORDERED that the Clerk of the Court is directed to attach to the copy of this Order the Court's Q&As on the subject "Representing a Taxpayer Before the U.S. Tax Court".
RATIFICATION OF PETITION
___, have read the Petition filed with the Court on ___and do hereby ratify and affirm the filing of said document by affixing my signature hereto.
REPRESENTING A TAXPAYER BEFORE THE U.S. TAX COURT
The United States Tax Court, which is separate and independent from the Internal Revenue Service (IRS), has certain requirements that must be met before someone can represent another person or entity before the Court. Unlike the IRS, the Court does not recognize powers of attorney.
Who can represent me in my Tax Court case?
• You may represent yourself or hire an attorney or other person who is admitted to practice before the Court. You will know that a person is admitted to practice before the Court because that individual will have a Tax Court bar number. All representatives who practice before the Tax Court are subject to the American Bar Association's Model Rules of Professional Conduct.
What if the person I want to represent me is not admitted to practice before the Court?
• If your representative is an attorney, he or she may submit an application to seek admission to the Court's bar. Upon admission, the attorney will be assigned a Tax Court bar number and can then represent you in the case.
• If your representative is not an attorney, that person can only be admitted to practice before the Court by taking a written examination given every two years and by meeting other Court requirements. Information concerning the application for admission and the Court's nonattorney exam may be found on the Court's website, www.ustaxcourt.gov.
May I represent the estate or trust of a deceased taxpayer before the Court without hiring a representative?
• Yes, if you are a duly authorized fiduciary or representative of the deceased taxpayer. For example, a state court of competent jurisdiction may appoint an individual as an executor, administrator, or personal representative of a deceased person. If you are a fiduciary, you should file a “Motion for Substitution of Party and to Change Caption” and attach a copy of the state court-issued letters of administration or letters testamentary. The motion must list the case name and docket number.
May I represent an incompetent or incapacitated taxpayer before the Court?
• Yes, if you are a fiduciary duly appointed under state law, such as a guardian or conservator. If you have been appointed to serve as a conservator or guardian of the petitioner, you may file a Motion to Substitute Party and attach a copy of any documents providing proof of your appointment. The motion must list the case name and docket number.
In the alternative, the Court may permit you to be recognized as petitioner's “next friend” by filing a Motion to Be Recognized as Next Friend stating:
1. that petitioner cannot prosecute this case without assistance;
2. that the person seeking appointment as next friend would like to be recognized as petitioner's next friend, he or she has a significant relationship with petitioner, and would represent petitioner's best interests;
3. that there is no other person better suited to serve as next friend; and
4. the names and addresses of persons (e.g., spouse, parent, or siblings) who may have an interest in this matter.
You must include as an attachment to the motion a current statement from the petitioner's personal physician (or equivalent support) indicating that the petitioner is not competent to prosecute his or her case without assistance. You must also state in the motion whether anyone is known to have an objection to the Court's recognition of you as the petitioner's next friend. The motion must list the case name and docket number.