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Petitioner failed to do so. Consequently, we sustain respondent's
deficiency determination.
Respondent filed a motion seeking to impose a penalty on
petitioner pursuant to section 6673(a). Section 6673(a)(1)
authorizes the Court to require a taxpayer to pay to the United
States a penalty up to $25,000 whenever it appears that proceedings
in this Court have been instituted or maintained by the taxpayer
primarily for delay, or that the taxpayer's position in such
proceeding is frivolous or groundless. A taxpayer's position is
frivolous or groundless "if it is contrary to established law and
unsupported by a reasoned, colorable argument for change in the
law." Coleman v. Commissioner, 791 F.2d 68, 71 (7th Cir. 1986).
We find that petitioner instituted this proceeding primarily
for delay and maintained a frivolous and groundless position.
Petitioner was made aware of the frivolous and groundless nature of
his arguments. He failed to heed these warnings and allowed his
case to proceed. Petitioner's insistence on pursuing his fruitless
argument has consumed the time and effort of both this Court and
the Commissioner that could have otherwise been devoted to
resolving bona fide claims of other taxpayers. See Cook v.
Spillman, 806 F.2d 948 (9th Cir. 1986). Accordingly, we shall
grant respondent's motion for an award of a penalty under section
6673 and require petitioner to pay a penalty to the United States
in the amount of $1,000, although we advise petitioner that the
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