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the Court may require the taxpayer to pay a penalty to the United
States of up to $25,000.
At trial, after petitioner stated that he would not testify,
respondent moved for a penalty under section 6673. According to
respondent’s motion, petitioner’s claim that the $103,420 paid to
Universal is not includable in petitioner’s income is frivolous.
Under the circumstances of the case at hand, we decline to
impose the section 6673 penalty. On June 19, 2000, respondent’s
counsel informed petitioner that he was prepared to move for a
penalty if petitioner continued to insist that the $103,420 paid
to Universal for work done by petitioner was not petitioner’s
income. Respondent’s motion seeks a penalty against petitioner
on this ground.
We note that on June 13, 2000, petitioner had stipulated
that WWMC paid Universal $95,596 for work done by petitioner. We
also note that on June 27, 2000, the parties submitted a Second
Stipulation of Facts. In that document, petitioner made many
additional stipulations concerning the payment of the $103,420 to
Universal for work done by petitioner, and concerning deposits of
that amount to Universal’s bank account. These stipulations
helped prove respondent’s case in chief. Indeed, we note that
respondent did not present any witnesses at trial.
We believe that petitioner’s course of conduct was counseled
by Mr. Chisum, who appears to have advised petitioner throughout
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