Marty M. Morin and Marilee D. Morin - Page 7




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               Respondent also determined that Mr. Morin is liable for an             
          addition to tax pursuant to section 6654 for failing to make                
          estimated tax payments for 1993 and that petitioners are liable             
          for additions to tax pursuant to section 6654 for failing to make           
          estimated tax payments for 1994 and 1995.  Petitioners did not              
          offer any evidence at trial related to this issue, and they                 
          failed to address it on brief.  Therefore, we hold that Mr. Morin           
          is liable for an addition to tax pursuant to section 6654 for               
          failing to make estimated tax payments for 1993 and that                    
          petitioners are liable for additions to tax pursuant to section             
          6654 for failing to make estimated tax payments for 1994 and                
          1995.  See Rule 142(a).                                                     
               By motion made at the conclusion of trial, respondent                  
          requested that the Court impose a penalty pursuant to section               
          6673.  Section 6673(a)(1) authorizes this Court to require a                
          taxpayer to pay to the United States a penalty not to exceed                
          $25,000 if the taxpayer took frivolous positions in the                     
          proceedings or instituted the proceedings primarily for delay.  A           
          position maintained by the taxpayer is "frivolous" where 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).                              
               Petitioners' position, based on stale and meritless                    
          contentions, is manifestly frivolous and groundless, and they               





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