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Respondent's Motion Under I.R.C. Section 6673
The stipulated evidence establishes that petitioner filed
so-called "Fifth Amendment" Forms 1040 for the years in issue;
that he was advised promptly by the Internal Revenue Service that
the Forms 1040 were not proper tax returns; that he was convicted
of failure to file tax returns for 2 of the 3 years in issue; and
that he failed to comply with the terms of probation requiring
him to file proper tax returns and, as a result, was sentenced to
prison. Throughout this proceeding, however, petitioner has
contended that he was not required to file tax returns for the
years in issue. Petitioner filed a frivolous reply to the
answer, a frivolous response to requests for admissions, and a
frivolous response to the Court's Order to Show Cause under
Rule 91(f)(2). In an Order deeming certain matters stipulated,
the Court stated:
we have concluded in this Order that a substantial
number of petitioner's responses were "evasive or not
fairly directed" to the proposed stipulation. Should
petitioner persist in conducting the litigation in this
manner, further sanctions may be imposed. Petitioner's
attention is directed to Section 6673(a) of the
Internal Revenue Code, which provides that whenever it
appears to the Tax Court that proceedings before it
have been instituted or maintained by the taxpayer
primarily for delay, or the taxpayer's position is
frivolous or groundless, the Court may require the
taxpayer to pay a penalty of up to $25,000. [Order
dated January 29, 1998.]
Less than 3 weeks after the date of that Order, petitioner served
on respondent frivolous requests for admissions repeating his
allegations that his compensation was not taxable income.
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