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responsive answers and denials to respondent's Third Request for
Admissions, the case could have been settled or tried on the
merits, which would have resulted in the Court's exercise of its
judicial function in the traditional way.
We conclude, with respect to the second phase of this case,
that petitioners' failures to respond and appear have caused the
further proceedings herein to have been "maintained by the
taxpayer primarily for delay" within the meaning of section
6673(a)(1). We therefore shall require petitioners to pay an
additional penalty of $1,000, to be added to the $10,000 penalty
previously decided by reason of petitioners' frivolous and
groundless arguments with respect to the first phase of this
case.
An appropriate order and
decision will be entered.
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Last modified: May 25, 2011