Laurel Ann Curtis - Page 15

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          law * * *  The inquiry is objective.  If a person should have               
          known that his position is groundless, a court may and should               
          impose sanctions."  Coleman v. Commissioner, 791 F.2d 68, 71 (7th           
          Cir. 1986); Booker v. Commissioner, T.C. Memo. 1996-261; see also           
          Hansen v. Commissioner, 820 F.2d 1464, 1470 (9th Cir. 1987)                 
          (apparent finding that petitioner should have known that claim              
          was frivolous allows for section 6673 penalty).                             
               Based on the record in this case, we conclude that                     
          petitioner's position in this proceeding is both frivolous and              
          groundless and that petitioner undertook certain actions                    
          primarily for delay.  Petitioner has never substantively                    
          addressed the pertinent issues in this case, which relate to the            
          correct determination of income and deductions for the years in             
          issue and various additions to tax.  Instead, petitioner has                
          asserted absurd, discredited, and misguided tax-protester                   
          arguments such as the following:  (1) the Internal Revenue Code             
          does not make anyone "liable" for an income tax, (2) the Internal           
          Revenue Code contains no mandatory provisions, and therefore,               
          compliance is voluntary, (3) the Tax Court has no authority to              
          decide matters of law or Constitutional issues, and (4) an income           
          tax on petitioner’s rents pursuant to Pollock v. Farmers’ Loan &            
          Trust Co., supra, is an unapportioned direct tax.                           
               Petitioner has maintained her frivolous and groundless                 
          positions not only by way of her testimony and on brief, but also           
          in numerous additional written submissions to the Court, all of             

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