- 9 - the additions to tax under section 6651(a)(1) and (2).1 See sec. 6654(a); United States v. Boyle, 469 U.S. 241, 245 (1985). F. Whether Petitioner Is Liable for a Penalty Under Section 6673 At trial, respondent moved that the Court impose a penalty under section 6673 on the grounds that petitioner maintained frivolous and groundless positions. Petitioner has not responded to respondent’s motion. The Court may require that the taxpayer pay a penalty to the United States of not more than $25,000 if the taxpayer instituted or maintained proceedings primarily for delay, if the taxpayer's position is frivolous or groundless, or if the taxpayer unreasonably failed to pursue administrative remedies. See sec. 6673. A taxpayer's position is frivolous or groundless if it is contrary to established law and unsupported by a reasoned, colorable argument for change in the law. See Coleman v. Commissioner, 791 F.2d 68, 71 (7th Cir. 1986). Petitioner’s position is contrary to law and is not supported by a reasonable argument for a change in the law. Respondent’s counsel told petitioner twice in writing that petitioner’s positions were without merit, and gave petitioner copies of recent Tax Court cases so holding and a copy of section 1 A return prepared by the Commissioner under sec. 6020(b) is treated as a return filed by the taxpayer for returns due after July 30, 1996, for purposes of sec. 6651(a)(2). See sec. 6651(g).Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011