Steven J. and Jean L. Liddane - Page 6

                                        - 6 -                                         

          (1980), and Steele v. Commissioner, T.C. Memo. 1997-307, as                 
          evidenced by his letter to petitioners of February 26, 1998,                
          annexed as an exhibit to respondent's trial memorandum.  In each            
          of those cases, the Court imposed a penalty against the taxpayer            
          under section 6673 because of the frivolousness of the taxpayer's           
          arguments.  That letter also notified petitioners that respondent           
          intended to file a motion for a penalty under section 6673 “in an           
          amount of at least $5,000.00, if you continue to assert your                
          previously stated objections to paying taxes” because “As you can           
          see by reading these cases, your objections to paying taxes are             
          clearly frivolous and, even more to the point, have been                    
          repeatedly rejected by the Courts.”                                         
               At the hearing, the Court explained to petitioners that                
          their position has no merit.  The Court told petitioners that               
          petitioner's letter of October 23, 1996, would not be treated as            
          part of their return, but would be deemed a protest filed with              
          the Appeals officer.  Although the facts of the case had been               
          fully stipulated, petitioners had a prepared statement that they            
          wished to read into the record.  The Court suggested that it                
          would be more efficient to file the statement as a brief.  The              
          parties thereupon each moved for summary judgment, and respondent           
          filed a written motion for a penalty under section 6673 “in an              
          amount not less than $10,000”.                                              







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  Next

Last modified: May 25, 2011