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4. Section 6673(a)(1) Penalty
Section 6673(a)(1) authorizes this Court to award a penalty
not in excess of $25,000 when proceedings have been instituted or
maintained primarily for delay, or where the taxpayer's position
is frivolous or groundless; i.e., it is contrary to established
law and unsupported by a reasoned, colorable argument for a
change in the law. See Coleman v. Commissioner, 791 F.2d 68, 71
(7th Cir. 1986); Talmage v. Commissioner, T.C. Memo. 1996-114,
affd. without published opinion 101 F.3d 695 (4th Cir. 1996). In
our view, under all the circumstances here, including the
concessions by respondent, a penalty in this case is not
appropriate.
To reflect concessions,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011