Ernest Newton - Page 9

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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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