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simply stated, petitioner has not established a case nor has he
submitted any evidence to refute respondent's determinations.
Respondent, therefore is sustained as to the deficiencies in tax
and the additions to tax.
At trial, respondent orally moved for the award of a penalty
under section 6673(a). The penalty under section 6673(a) is
applicable whenever it appears to the Court that (A) proceedings
before it have been instituted or maintained by the taxpayer
primarily for delay, (B) the taxpayer's position in such
proceeding is frivolous or groundless, or (C) the taxpayer
unreasonably failed to pursue available administrative remedies.
On this record, the Court concludes that this proceeding was
instituted and maintained by petitioner primarily for delay, and
that petitioner's position is frivolous and groundless. Under
section 6673(a), the Court may require the taxpayer to pay to the
United States a penalty not in excess of $25,000 in such
circumstances. The Court holds that a penalty under section
6673(a) is warranted in this case. Respondent's oral motion is
granted, and the amount of that penalty will be $1,500.
An appropriate order and decision
will be entered for respondent.
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Last modified: May 25, 2011