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Pursuant to section 6673(a)(1), this Court is authorized to
impose a penalty against a taxpayer, not in excess of $25,000,
whenever it appears that, inter alia, the proceedings before the
Court have been instituted or maintained by the taxpayer
primarily for delay. See sec. 6673(a)(1)(A). The penalty
provision of section 6673(a)(1) is generally used to sanction
flagrant tax protesters and abusive tax shelters, but it is also
a proper channel for this Court to sanction and deter the use of
false testimony and to protect the integrity of our proceedings
from intentional misconduct. See Bagby v. Commissioner, 102 T.C.
596, 615 (1994); see also Ash v. Commissioner, 96 T.C. 459, 472-
473 (1991) (noting this Court's power to impose sanctions when
the underlying facts and circumstances establish an abuse of the
Court's processes). In the instant case, petitioner's conduct
warrants sanction pursuant to section 6673(a)(1)(A).
Petitioner's conduct should be sanctioned because it
resulted in an abuse of the Court's processes and was designed,
primarily, to cause delay. In particular, during the September
27, 1999, trial session in Los Angeles, California, a question
arose as to petitioner's experience with Tax Court litigation.
As the Court attempted to ascertain the extent of petitioner's
Tax Court experience, the following discourse took place:
THE COURT: But you have appeared in this Court
before, is that correct?
MR. TULLY: I don't know about this courtroom,
Your Honor.
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