Rivero v. Fidelity Investments, Inc., No. 20-40371 (5th Cir. 2021)Annotate this Case
Plaintiff filed suit seeking a declaratory judgment that an IRS transfer certificate is not necessary to transfer ownership of her account with Fidelity. The district court sua sponte dismissed the action for lack of subject matter jurisdiction, concluding that such a declaration would necessarily involve a determination with respect to federal taxes.
The Fifth Circuit affirmed, concluding that the Declaratory Judgment Act's federal-tax exception is a jurisdictional condition, requiring dismissal, rather than a nonjurisdictional condition, which may be waived. In this case, because the requested relief—declaring that plaintiff was not required to provide a transfer certificate to Fidelity—necessarily involves a determination with respect to federal taxes, the district court properly dismissed her action for lack of jurisdiction.