Biotech’s Tax Court Petition Fails Due to Suspended Status

A California company can’t challenge an IRS collection action because it lacked the legal capacity to file a petition while its corporate status was suspended under state law, the US Tax Court held Monday.

Arbor Vita Corp.'s petition against the IRS was improper because the company’s corporate powers were suspended when it was filed, and remained suspended until after the 30-day filing deadline under IRC Section 6330 had expired, Judge Adam B. Landy said in the opinion. In granting the government’s motion to dismiss, Landy said Arbor Vita didn’t have the requisite corporate capacity when it filed its tax ...