Stephen V. Talmage - Page 17

          Commissioner, 74 T.C. 846 (1980), and (iii) Kile v. Commissioner,           
          an Order of this Court; Greenberg v. Commissioner, 73 T.C. 806,             
          813-816 (1980) (tax protester arguments); Wilkinson v.                      
          Commissioner, 71 T.C. 633, 639-643 (1979) (tax protester                    
          arguments); Cornell v. Commissioner, T.C. Memo. 1983-370 (wages             
          not income).                                                                
               Petitioner denies being a tax protester and claims to be               
          seeking answers to his questions in good faith.  Whether or not             
          his primary motivation is protest--as we suspect it is--his                 
          section 83 arguments are too close to the conventional                      
          protester's wages-are-not-income arguments not to be frivolous.             
          Indeed, we have already held such section 83 arguments to be                
          frivolous, thus justifying imposition of a section 6673 penalty.            
          Santangelo v. Commissioner, supra.                                          
               The inquiry in deciding whether a party's position is                  
          frivolous is objective.  If a person knew or should have known              
          that his position is without merit, a court may and should impose           
          sanctions.  Coleman v. Commissioner, 791 F.2d at 71-72; May v.              
          Commissioner, 752 F.2d at 1307.  Parties who sign pleadings                 
          certify that they are well grounded in fact and warranted by                
          existing law or a good faith argument for the extension,                    
          modification, or reversal of existing law.  Rule 33(b).  A                  
          petition to the Tax Court is frivolous if it is contrary to                 
          established law and unsupported by a reasoned, colorable argument           

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