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1995 and 1996; the Court of Appeals for the Ninth Circuit
affirmed our decision.
Section 6673(a)(1)(A) and (B) allows the Tax Court to
require a taxpayer to pay to the United States a penalty of up to
$25,000 when a taxpayer institutes or maintains a proceeding
primarily for delay, or where the taxpayer’s position in the
proceeding is frivolous or groundless. The record in this case
shows no warning to petitioner from respondent or the Court that
his conduct in maintaining this proceeding might subject him to a
penalty under section 6673(a). Respondent made no motion for a
penalty herein under section 6673(a) against petitioner, and this
case is not such a case that we would impose a section 6673(a)
penalty on our own motion.
We do take this occasion to inform petitioner that Courts of
Appeals have their own sanctioning power to deal with frivolous
appeals. Sec. 7482(c); 28 U.S.C. sec. 1912 (1994); Fed. R. App.
P. 38. The Court of Appeals for the Ninth Circuit, to which this
case would be appealable, has not hesitated to use its power to
order sanctions under these provisions against taxpayer-
appellants in appropriate cases. See, e.g., Smith v.
Commissioner, 800 F.2d 930, 936 (9th Cir. 1986), affg. T.C. Memo.
1984-661; Colton v. Gibbs, 902 F.2d 1462, 1464 (9th Cir. 1990);
Trohimovich v. Commissioner, 776 F.2d 873, 875-876 (9th Cir.
1985).
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