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trial related to this issue, and she failed to address it on
brief. Therefore, we hold that petitioner is liable for the
addition to tax pursuant to section 6654. 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).
Petitioner filed several frivolous requests for admissions.
Petitioner's position, based on stale and meritless contentions,
is manifestly frivolous and groundless, and she has wasted the
time and resources of this Court. Accordingly, we shall grant
respondent's motion, and we shall impose a penalty of $2,500
pursuant to section 6673.
To reflect the foregoing,
An appropriate order and
decision will be entered for
respondent.
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Last modified: May 25, 2011