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the validity of the underlying tax liability is not properly
placed at issue, the Court will review the determination of the
Commissioner of Internal Revenue for abuse of discretion. Sego
v. Commissioner, 114 T.C. 604, 610 (2000); Goza v. Commissioner,
114 T.C. 176, 182 (2000).
Based upon our examination of the entire record before us,
we find that respondent did not abuse respondent’s discretion in
determining to proceed with the collection action as determined
in the notice of determination with respect to petitioner’s
unpaid liability for 1999.
In respondent’s motion, respondent requests that the Court
require petitioner to pay a penalty to the United States pursuant
to section 6673(a)(1). Section 6673(a)(1) authorizes the Court
to require a taxpayer to pay to the United States a penalty in an
amount not to exceed $25,000 whenever it appears to the Court,
inter alia, that a proceeding before it was instituted or
maintained primarily for delay, sec. 6673(a)(1)(A), or that the
taxpayer’s position in such a proceeding is frivolous or
groundless, sec. 6673(a)(1)(B).
In Pierson v. Commissioner, 115 T.C. at 581, we issued an
unequivocal warning to taxpayers concerning the imposition of a
penalty under section 6673(a) on those taxpayers who abuse the
protections afforded by sections 6320 and 6330 by instituting or
maintaining actions under those sections primarily for delay or
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Last modified: May 25, 2011