Opinion
3036-22
02-27-2023
ED SACHSE AND JULIE SACHSE, DECEASED, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Christian N. Weiler, Judge
On February 21, 2023, respondent filed a Motion to Dismiss for Lack of Jurisdiction as to Petitioner Julie Sachse, Deceased, and to Change Caption. In his motion, respondent argues that this case, insofar as it relates to petitioner Julie Sachse, deceased, be dismissed for lack of jurisdiction upon the ground that the Petition may not have been signed by a fiduciary of the Estate of Julie Sachse as required by Rules 23(a) and 24(b), and that the caption be changed by striking the name Julie Sachse, deceased, therefrom.
All Rule references are to the Tax Court Rules of Practice and Procedure.
The Petition filed to commence this case on January 24, 2022, indicates that petitioner Julie Sachse is deceased. However, no letters testamentary, letters of administration, or other probate court papers issued by a state court of competent jurisdiction appear to be attached to the Petition, and it is therefore not clear whether petitioner Ed Sachse or any other individual, has been duly appointed to represent the estate of the decedent Mrs. Sachse in this proceeding.
It is well settled that, unless the petition is filed by the taxpayer, or by someone lawfully authorized to act on the taxpayer's behalf, we are without jurisdiction. See Fehrs v. Commissioner, 65 T.C. 346, 348-349 (1975). Because the decedent Mrs. Sachse did not sign the Petition, and it is not clear whether Mr. Sachse (who did sign the Petition) has been lawfully authorized do so on the estate's behalf, the Court's jurisdiction over the estate is in question.
A decedent's estate may be represented by someone acting in a fiduciary capacity, such as an executor, administrator, or personal representative. Rule 60(c) provides in relevant part: "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."
As relevant here, under California law a cause of action that survives the death of the person entitled to commence an action or proceeding passes to the decedent's successor in interest. Cal. Civ. Proc. Code sec. 377.30. In general, a decedent's successor in interest is "the beneficiary of the decedent's estate." Cal. Civ. Proc. Code sec. 377.11. California Civil Procedure Code section 377.33 authorizes the appointment of a decedent's successor in interest as a special administrator for purposes of proceedings in this Court when in the interest of justice. See Estate of Galloway v. Commissioner, 103 T.C. 700, 701-705 (1994). A person who seeks to continue a pending action or commence a proceeding as the decedent's successor in interest must execute and file an affidavit or declaration, as described in California Civil Procedure Code section 377.32. See Estate of Galloway v. Commissioner, 103 T.C. at 703.
While it is not clear whether any individual has been duly appointed to represent the estate of the decedent Mrs. Sachse, even if no such individual exists, the foregoing shows that it is possible under California law for her estate to be represented in this proceeding by a successor in interest, and under our Rules such a person may ratify, on behalf of the estate, the timely filed petition in this case. See Rule 60(a). Accordingly, we will direct the parties as set forth below.
Upon due consideration and for cause, it is
ORDERED that at a reasonable date and time, but no later than March 27, 2023, the parties shall confer as to the status of this case, including: (1) whether the estate of the decedent Mrs. Sachse has been or will be probated; (2) if the decedent's estate is being probated, whether an executor, administrator, or other fiduciary has been duly appointed by a court of competent jurisdiction; (3) if so, the name and address of such duly appointed fiduciary for the decedent's estate; (4) if the decedent's estate has not been or will not be probated, the names and addresses of the decedent's heirs at law/successors in interest and whether any of them are willing to serve, under California Civil Procedure Code section 377.33, as special administrator of the decedent's estate for purposes of this litigation; and (5) if there is any duly appointed fiduciary to represent the decedent's estate or any individual willing to serve as decedent's successor in interest, whether that fiduciary or individual intends to file a proper motion to substitute parties and change caption. It is further
ORDERED that, on or before March 27, 2023, the parties shall file a joint report regarding the then-present status of this case, including information pertaining to the matters set forth in the preceding ordered paragraph. It is further
ORDERED that the Clerk of the Court shall attach to the copy of this Order served on petitioners a copy of California Civil Procedure Code section 377.32.