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Rule 142(a); United States v. Boyle, 469 U.S. 241, 245 (1985).
Petitioners offered no credible evidence showing that they filed
returns in 1990 and 1991 or that their failure to file was due to
reasonable cause and not due to willful neglect. Accordingly, we
hold that petitioners are liable for the additions to tax under
section 6651(a)(1).
Respondent also determined that petitioners are liable for
additions to tax under section 6654 for failing to make estimated
tax payments and penalties under section 6662(b)(1) for
negligence or disregard of rules or regulations. Petitioners did
not offer any evidence relating to these issues. Therefore, we
hold that petitioners are liable for the additions to tax under
section 6654 and penalties under section 6662(b). See Rule
142(a).
Finally, we consider whether petitioners have engaged in
behavior that warrants the imposition of a penalty pursuant to
section 6673. Section 6673(a)(1) authorizes this Court to
penalize a taxpayer for taking frivolous positions or instituting
proceedings primarily for delay. Petitioners received a warning
that respondent would move for a penalty under section 6673.
Petitioners filed numerous frivolous motions with the Court.3
Their conduct throughout this proceeding has convinced us that
they instituted and maintained this proceeding primarily for
3 For example, petitioners filed a motion that was entitled
"Petitioners Closing Motion for IRS to do something".
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Last modified: May 25, 2011