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decided not to file a return, then filed a return taking a
clearly groundless position, through the times of filing of their
petition and the protest letter with its frivolous arguments that
they sought to incorporate into their return, through the filing
of their trial memorandum and their actions at the hearing, and
concluding with their brief, all, as the Court of Appeals said in
Coleman v. Commissioner, 791 F.2d at 71, “contrary to established
law and unsupported by a reasoned, colorable argument for change
in the law.”
In these circumstances, we will exercise our discretion
under section 6673(a)(1) and require petitioners, in addition to
the underpayment of tax, the late filing addition, and the
negligence penalty, to pay a penalty to the United States in the
amount of $2,500.
In view of the foregoing,
An appropriate order will
be issued, and decision will be
entered under Rule 155.
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