Case: Jurisdiction Fails Where Requirement of Transfer Certificate Would Determine Tax Liability (5th Cir.) (IRC §6325)

The phrase “except with respect to Federal taxes” in the Declaratory Judgment Act takes away a court’s power to provide declaratory relief in a case that would interpret federal tax regulations in determining if a transfer certificate under tax code Section 6325 is required to transfer an inherited account, the Fifth Circuit Court of Appeals held. Plaintiff owned a brokerage account as joint tenants with right of survivorship with a now deceased person. While Plaintiff is absolute owner, the parties dispute whether an IRS transfer certificate is required before Plaintiff may re-register the account as an individual account. The ...