Ability to Go to Tax Court - Suspended Corporation Status

In Urgent Care Nurses Registry, Inc. v. Commissioner, the Tax Court found that Urgent Care Nurses Registry, Inc. did not have jurisdiction to go to Tax Court because their charter was suspended under California law. This is due to the corporation not having legal capacity to prosecute the case.


This is a pretty common occurrence in the tax world and one that practitioners need to be aware of when representing a business entity. Before taking anything to Tax Court, all state obligations to make sure the company is in good standing with the state should be made.


Relevant Citation: TC Memo 2016-198