Opinion
4721-21
09-01-2022
TELDEBT SOLUTIONS, INC., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER OF DISMISSAL FOR LACK OF JURISDICTION
Kathleen Kerrigan, Chief Judge.
This deficiency case is before the Court on respondent's Motion to Dismiss for Lack of Jurisdiction, filed July 14, 2021, on the ground petitioner lacked capacity to file the petition in this case because petitioner's corporate powers, rights, and privileges were suspended on September 8, 2017, pursuant to the provisions of the Business Corporation Act. On February 11, 2022, respondent filed a supplement to his motion. Although the Court directed petitioner to file an objection, if any, to respondent's motion to dismiss, petitioner failed to do so.
Whether a corporation may engage in litigation in this Court is determined by applicable State law, here Illinois. Tax Court Rule 60(c); see David Dung Le, M.D., Inc. v. Commissioner, 114 T.C. 268, 270-271 (2000), affd. 22 Fed.Appx. 837 (9th Cir. 2001); Condo v. Commissioner, 69 T.C. 149, 151 (1977). Upon review of Illinois law, in particular 805 Ill. Comp. Stat. Ann. 5/15.85(c) (West, Westlaw through P.A. 102-981 of the 2022 Reg. Sess.) (explaining that no corporation required to pay a franchise tax shall maintain any civil action until all such franchise taxes have been paid in full), we conclude that petitioner lacked the capacity to commence this case and that this case must be dismissed for lack of jurisdiction. Tax Court Rule 60(c); David Dung Le, M.D., Inc. v. Commissioner, 114 T.C. at 270-272, 274-276, Padre Island Thunderbird, Inc., 72 T.C. 391, 397-398 (1979).
Upon due consideration, it is
ORDERED that respondent's Motion To Dismiss for Lack of Jurisdiction, as supplemented, is granted and this case is dismissed for lack of jurisdiction.