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relating to reasonable cause and lack of willful neglect. It is
mandatory and extenuating circumstances are irrelevant.” Estate
of Ruben v. Commissioner, 33 T.C. 1071, 1072 (1960). Petitioner
does not argue, nor do we find, that any statutory exception
under section 6654 applies in this case. Accordingly, we sustain
respondent’s determination on this issue.
The Tax Court is authorized under section 6673(a)(1) to
require a taxpayer to pay to the United States a penalty not in
excess of $25,000 when it appears to the Court that the
taxpayer’s position in the proceeding is frivolous or groundless.
Petitioner’s position, based on stale and meritless contentions,
is manifestly frivolous and groundless, and his action has
resulted in the waste of limited judicial and administrative
resources. At trial we warned petitioner of these penalty
provisions, and he promptly brought his arguments to an end.
Under these circumstances we shall not impose a penalty under
section 6673(a)(1) at this time, but we caution petitioner that
the imposition of the penalty is likely if he returns to this
Court with similar arguments in the future.
Reviewed and adopted as the report of the Small Tax Case
Division.
To reflect respondent’s concession,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011