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require a taxpayer to pay to the United States a penalty not in
excess of $25,000 whenever it appears that proceedings 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 failure to provide the Commissioner with
information requested and his failure to offer evidence at trial
pertaining to the substantive issues raised in the notice of
deficiency are evidence that a suit in this Court was instituted
primarily for delay. Stamos v. Commissioner, 95 T.C. 624, 638
(1990), affd. without published opinion 956 F.2d 1168 (9th Cir.
1992). The circumstances here suggest that petitioner may have
instituted and maintained this proceeding primarily for purposes
of delay; however, we shall not now impose a penalty under
section 6673(a)(1). Nonetheless, we take this opportunity to
admonish petitioner that the Court shall strongly consider
imposing such a penalty if he returns to the Court and proceeds
in a similar fashion in the future.
To reflect the foregoing,
Decision will be entered
for respondent.
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Last modified: May 25, 2011