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(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 is properly imposed when the taxpayer knew or should have
known that his claim or argument was frivolous. See Hansen v.
Commissioner, 820 F.2d 1464, 1470 (9th Cir. 1987).
We find that petitioner's arguments made in his petition, in
his trial memorandum, and at trial are frivolous. He has caused
this Court to waste its limited resources on his erroneous views
of the tax law which he knew or should have known are completely
without merit. In view of the foregoing, we will exercise our
discretion under section 6673(a) and require petitioner to pay a
penalty to the United States in the amount of $6,000.
To reflect the foregoing,
Decision will be entered
for respondent.
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Last modified: May 25, 2011