Jerome V. Mancebo - Page 5

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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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