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taxpayer’s position is frivolous or groundless or the taxpayer
has instituted or pursued the proceeding primarily for delay.
SEC. 6673. SANCTIONS AND COSTS AWARDED BY COURTS.
(a) Tax Court Proceedings.--
(1) Procedures instituted primarily for
delay, etc.--Whenever it appears to the Tax Court
that–-
(A) proceedings before it have been
instituted or maintained by the taxpayer
primarily for delay,
(B) the taxpayer’s position in such
proceeding is frivolous or groundless, or
(C) the taxpayer unreasonably failed to
pursue available administrative remedies,
the Tax Court, in its decision, may require the
taxpayer to pay to the United States a penalty not
in excess of $25,000.
The record demonstrates that petitioners’ contentions are
frivolous and groundless, and we are convinced that petitioners
instituted and maintained the instant proceeding primarily, if
not exclusively, for purposes of delay.8 As noted above,
respondent’s letter dated May 9, 2003, informed petitioners that
they risked a monetary penalty by making such arguments, but they
continued to waste the limited resources of the Federal tax
system. Consequently, pursuant to section 6673(a)(1), we shall
8Petitioners have made the same frivolous and groundless
contentions in a separate proceeding before this Court, docket
No. 6901-03L, with respect to their 1997 tax year.
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Last modified: May 25, 2011