Kermit W. Kinkade - Page 9




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          chosen to ignore the Court's precedents and admonitions and has             
          continued to assert frivolous and groundless positions.                     
          Petitioner has wasted valuable time and imposed additional costs            
          on respondent, the Court, and petitioner's employers and their              
          accountants by refusing to stipulate the amounts of compensation            
          that he received from his employers during the taxable years in             
          question and other facts that were not reasonably in dispute,               
          including his failures to file returns.                                     
               Petitioner apparently followed the Court's advice in                   
          settling the case at docket No. 7944-98, but he has continued to            
          play his hopeless hand in this case, consciously choosing to risk           
          the imposition of a penalty under section 6673.                             
               In the face of petitioner's refusal to deal with this case             
          on the merits, respondent has asked the Court to impose a penalty           
          under section 6673 in the full amount permitted by law, $25,000.            
          The Court agrees with respondent that a substantial penalty is              
          appropriate, but, considering the total amount owed by                      
          petitioner, not in the full amount of $25,000.  We will exercise            
          our discretion under section 6673 to require petitioner to pay a            
          penalty to the United States in the amount of $10,000.                      

                                             An appropriate order will                
                                        be issued, and decision will be               
                                        entered for respondent.                       






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