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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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