William C. Reichenbach - Page 8

                                        - 8 -                                         

          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 position 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).                                                            
               Petitioner persisted in maintaining his frivolous arguments            
          throughout this proceeding, even after being warned by the Court            
          and after having received notice from the Court in a prior case.6           
          On the basis of the record, we conclude that the proceedings                
          herein were instituted primarily for delay and that petitioner's            
          position is both frivolous and groundless.  Accordingly, we                 
          exercise our discretion and award a penalty to the United States            
          under section 6673 in the amount of $5,000.  See Coulter v.                 
          Commissioner, 82 T.C. 580, 584-586 (1984); Abrams v.                        
          Commissioner, 82 T.C. 403, 408-411 (1984).                                  
               We have reviewed petitioner's other arguments and find them            
          to be without merit.                                                        
               To reflect the foregoing,                                              



               6  Petitioner was before this Court in Reichenbach v.                  
          Commissioner, T.C. Memo. 1995-369, affd. without published                  
          opinion 99 F.3d 1139 (6th Cir. 1996).  In that case, we found               
          petitioner's "shopworn tax-protester type arguments" to be                  
          without merit.                                                              




Page:  Previous  1  2  3  4  5  6  7  8  9  Next

Last modified: May 25, 2011