Opinion
4579-23S
06-07-2024
ZACHARY M. TAYLOR & DEBBIE D. TAYLOR, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Peter J. Panuthos, Special Trial Judge
This case was called from the calendar at the Court's February 5, 2024, San Francisco, California trial session. There was no appearance by or on behalf of petitioners. Counsel for respondent appeared and advised that a basis for settlement had been reached between petitioner Debbie D. Taylor and respondent. Counsel for respondent advised that he had received a copy of a death certificate of petitioner Zachary M. Taylor and a Declaration of Successor. The Court thereafter directed the parties to file any motions and or settlement documents by April 5, 2024. On April 5, 2024, respondent filed a Status Report requesting additional time to file a motion to change caption and to prepare a decision document for signature.
Pursuant to Rule 63(a), when a petitioner dies, "the Court, on its own or on motion of a party or the decedent's successor or representative, may order substitution of the proper parties." State law generally determines who has the capacity to be substituted as a party for a decedent. Rule 60(c); Fehrs v. Commissioner, 65 T.C. 346, 349 (1975). Thus, the appointment of a personal representative, executor, or administrator by the appropriate State court having jurisdiction over the estate of the decedent generally is necessary to establish the capacity of a person to litigate on behalf of the estate. Rule 60(c). Under California law, a decedent can be represented by a successor in interest who is appointed as a special administrator. Cal. Civ. Code § 377.33. A special administrator has the authority to commence or continue a case on decedent's behalf. See also Cal. Civ. Code §§ 377.11 and 377.32.
Rule references are to the Tax Court Rules of Practice and Procedure.
It is well settled that the Court's jurisdiction over a case continues unimpaired by the death of a petitioner. If there has been no administration of the deceased petitioner's estate, this Court may formulate an appropriate procedure to bring such a case to a close, including affording a decedent's heirs at law an opportunity to take whatever action may be necessary to protect their interests. Nordstrom v. Commissioner, 50 T.C. 30 (1968).
The Court will direct the parties to file an appropriate motion to substitute parties and change caption, and a further status report as directed below.
Premises considered, it is
ORDERED that, on or before July 15, 2024, the parties shall file an appropriate motion to substitute parties and change caption, and shall attach thereto (1) a copy of petitioner Zachary M. Taylor's death certificate, and (2) a copy of the letters testamentary, letters of administration, or other probate court papers issued by a state court of competent jurisdiction, duly appointing a successor or executor of the decedent's estate. It is further
ORDERED that the parties shall, on or before July 15, 2024, file a further written report (joint or separate) (1) advising the Court as to the then present status of this case, and (2) providing the appropriate documents concerning petitioner Zachary M. Taylor in order that the caption of this case can be changed.