Concept Analysis Corporation v. Internal Revenue Service

Full title: CONCEPT ANALYSIS CORPORATION, a Michigan Corporation, Plaintiff, v…

Court: United States District Court, E.D. Michigan, Southern Division

Date published: Oct 21, 2004

Case No. 04-71282 (E.D. Mich. Oct. 21, 2004)

Opinion

Case No. 04-71282.

October 21, 2004

MEMORANDUM OPINION ORDER GRANTING DEFENDANT'S MOTION TO DISMISS

DENISE HOOD, District Judge

I. INTRODUCTION

This matter is before the Court on United States' Motion to Affirm and Dismiss. The lawsuit arises from IRS' refusal to abate penalties assessed against Plaintiff for failure to pay and deposit payroll taxes. Plaintiff claims that one of its customers went bankrupt owing Plaintiff $54,554.25. (Compl. at 2.) Because of this, Plaintiff alleges that its request for penalty abatement meets IRS guidelines. (Id.) The United States asserts that Plaintiff is not represented by an attorney, and that IRS guidelines have not been met.

II. STATEMENT OF FACTS

Patrick M. Glance, non-attorney president of Plaintiff, commenced this appeal seeking judicial review of the notice of determination issued by the IRS Appeals Office. The notice denied Plaintiff's request for the abatement of penalties for its failure to pay and deposit withholding taxes. Plaintiff asserts that reasonable cause exists for the abatement solely because one of Plaintiff's customers unexpectedly went bankrupt. Because corporations cannot be represented by non-attorneys, Plaintiff's case is dismissed.

III. APPLICABLE LAW ANALYSIS

A. Non-Attorney Representation

Plaintiff is represented by its non-attorney president. (Compl. at 2; Mem. in Supp. of United States' Mot. to Affirm and Dismiss at 2.) Section 1654 of the United States Code, Title 28, states that "[i]n all courts of the United States parties may plead and conduct their own case personally or by counsel." As a result of this provision, courts have repeatedly held that corporations cannot appear in federal courts without a licensed attorney. See, e.g., Rowland v. Calif. Men's Colony, Unit II Men's Advisory Council, 506 U.S. 194 (1993) ("It has been the law for the better part of two centuries, for example, that a corporation may appear in the federal courts only through licensed counsel.") As Plaintiff's non-attorney president commenced this suit, and since no attorney has appeared on the record to date, the complaint must be dismissed.

Accordingly,

IT IS ORDERED that Defendant's Motion to Affirm and Dismiss [Docket No. 2, filed June 7, 2004] is GRANTED.

IT IS FURTHER ORDERED that Plaintiff's Complaint [Docket No. 1, filed April 6, 2004] is DISMISSED without prejudice.