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paid as estimated tax, the addition is automatically imposed
unless the taxpayer proves that a statutory exception applies.
Sec. 6654; Habersham-Bey v. Commissioner, 78 T.C. 304, 319-320
(1982). Petitioner has not proven that an exception applies and
is liable for the section 6654 addition to tax in each of the
years in issue.
Respondent has moved that we impose a penalty on petitioner
under section 6673. Section 6673(a)(1) authorizes the Court to
require a taxpayer to pay the United States a penalty not
exceeding $25,000 when the taxpayer institutes or maintains a
proceeding primarily for delay or where the taxpayer’s position
is frivolous or groundless. Petitioner knew that this Court has
held the tax protester arguments that he was asserting to be
frivolous. Nevertheless, petitioner continually asserted the tax
protester arguments in his petition and other pleadings,
responses to respondent's discovery requests, requests for
discovery from respondent, and testimony at trial. Petitioner
did not cooperate with respondent during audit or the appeals
conference.
We find that petitioner maintained frivolous positions with
respect to his income tax liability and instituted and maintained
this proceeding primarily for delay. Accordingly, we find that
petitioner's conduct justifies that award of damages. In view of
the number of years in issue and the amount of unreported income,
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