Lavonne Allen Hodgson - Page 4

                                        - 4 -                                         

          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             

Page:  Previous  1  2  3  4  5  Next

Last modified: May 25, 2011