- 84 - Accordingly, we sustain respondent’s determination with respect to that penalty. Penalty Under Section 6673(a)(1) On brief, respondent asks the Court to require petitioners to pay a penalty to the United States pursuant to section 6673(a)(1). Section 6673(a)(1) authorizes the Court to require a tax- payer to pay to the United States a penalty in an amount not to exceed $25,000 whenever it appears to the Court that, inter alia, the taxpayer’s position in a proceeding before it is frivolous or groundless. See sec. 6673(a)(1)(B). The Court may impose a penalty under section 6673(a)(1)(B) even if it finds that not all of the taxpayer’s arguments are frivolous or groundless. See Sloan v. Commissioner, 102 T.C. 137, 148 (1994), affd. 53 F.3d 799 (7th Cir. 1995). A position is frivolous when 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). The word “groundless” is a word of common usage. Web- ster’s Third New International Dictionary Unabridged 1003 (1993) provides the following definition of that word: “having no ground or foundation: lacking cause or reason for support”. In support of respondent’s position that the imposition on petitioners of a penalty under section 6673(a)(1) is appropriate,Page: Previous 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 Next
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