Douglas Michael Riley - Page 7

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          4.  Liability for Penalty Under Section 6673                                
               Section 6673 authorizes this Court to award a penalty to the           
          United States not in excess of $25,000 whenever it appears to the           
          Court that proceedings have been instituted or maintained by the            
          taxpayer primarily for delay, the taxpayer’s position in such               
          proceedings is frivolous or groundless, or the taxpayer                     
          unreasonably failed to pursue available administrative remedies.            
          Previously, on its own motion, this Court has awarded damages to            
          the United States where the taxpayer advanced frivolous and                 
          groundless contentions.  See Abrams v. Commissioner, 82 T.C. 403            
          (1984).  In the instant case, petitioner claimed utterly                    
          groundless casualty losses, arising from his former wife’s                  
          decision to terminate a pregnancy almost 20 years earlier, in               
          amounts obviously calculated to offset the taxable income he                
          reported.  Notwithstanding the Court’s warning that such claims             
          appeared frivolous, petitioner proceeded to trial.  Petitioner              
          has wasted the time and resources of this Court and respondent.             
          We will accordingly exercise our discretion under section 6673 to           
          require petitioner to pay a penalty to the United States of                 
               To reflect the foregoing,                                              
                                             Decision will be entered                 
                                        under Rule 155.                               

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