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of the tax required to be shown on the return if the failure to
file is for not more than 1 month, with an additional 5 percent
for each additional month or fraction of a month during which the
failure to file continues, not to exceed a maximum of 25 percent.
Sec. 6651(a)(1).
Based on the record, we find that petitioner has failed to
prove that his failure to file his returns was not due to willful
neglect or that such failure was due to reasonable cause. We
therefore hold that petitioner is liable for the section
6651(a)(1) additions to tax.
The fifth issue for decision is whether we should impose a
penalty on petitioner pursuant to section 6673(a).
Whenever it appears to this Court that proceedings before it
have been instituted or maintained by the taxpayer primarily for
delay or the taxpayer's position in such proceeding is frivolous
or groundless, the Court, in its discretion, may require the
taxpayer to pay to the United States a penalty not in excess of
$25,000. Sec. 6673(a)(1)(A) and (B). A position maintained by a
taxpayer in the Tax Court is frivolous "if it is contrary to
established law and unsupported by a reasoned, colorable argument
for change in the law." Coleman v. Commissioner, 791 F.2d 68, 71
(7th Cir. 1986). A penalty may be properly imposed when the
taxpayer knew or should have known that his claim or argument was
frivolous. Hansen v. Commissioner, 820 F.2d 1464, 1470 (9th Cir.
1987).
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