Stephen V. Talmage - Page 19

          if he persisted with his frivolous arguments.  Irrespective of              
          whether his conduct was in bad faith, it was certainly willful.             
          Thus, the section 6673 penalty is fully justified.  May v.                  
          Commissioner, supra at 1308-1309.  We therefore grant                       
          respondent's motion for a penalty.                                          
               Respondent states that she has spent 38 hours of attorney              
          time and 38 hours of the time of other employees on the case at             
          hand.  She has also pointed out that petitioner's arguments in              
          this case are virtually identical to those in Santangelo v.                 
          Commissioner, supra, in which we dismissed the case for failure             
          to state a claim and imposed a penalty of $2,500.  We repeatedly            
          brought Santangelo to petitioner's attention, and the deficiency            
          and additions in this case are more than twice the amount of the            
          deficiencies and additions in Santangelo.                                   
               The section 6673(a) penalty exists to deter actions that               
          result in repeated failures to follow the rules to which all who            
          litigate before us must conform.  As Judge Easterbrook said in              
          Coleman v. Commissioner, 791 F.2d at 72:                                    
               People who wish to express displeasure with taxes must                 
               choose other forums, and there are many available.                     
               Taxes are onerous, no doubt, and the size of the tax                   
               burden gives people reason to hope that they can escape                
               payment.  Self-interest calls forth obtuseness.  An                    
               obtuse belief--even if sincerely held--is no refuge, no                
               warrant for imposing delay on the legal system and                     
               costs on one's adversaries.  The more costly obtuseness                
               becomes, the less there will be.                                       
          If the penalty is to have any likelihood of proper deterrent                
          effect on this petitioner and others who might be inclined to               

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