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proceeding is frivolous or groundless. Based on the record, we
conclude that such an award is appropriate in this case.
Petitioners have pursued a frivolous and groundless position
in this proceeding from the time that they submitted their Motion
to Dismiss with the attached AAR on September 2, 1988, to their
failure to appear at the Trial Session on October 4, 1994.
Petitioners' arguments are no more than stale tax protester
contentions long dismissed summarily by this Court and all other
courts which have heard such contentions. See, e.g., Lonsdale v.
United States, 919 F.2d 1440 (10th Cir. 1990) (this is the
circuit to which an appeal would lie in this case); Rowlee v.
Commissioner, 80 T.C. 1111 (1983).
In sum, the conduct and the inaction described above support
a finding that petitioners instituted and maintained this action
primarily for delay. We are convinced that petitioners knew
their position to be groundless and frivolous, yet they persisted
in maintaining this proceeding primarily to impede the proper
workings of our judicial system and to delay the payment of their
Federal income tax liabilities. Accordingly, a penalty is
awarded to the United States under section 6673 in the amount of
$7,500.
To reflect the foregoing,
An appropriate order and
decision will be entered.
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