Lou Deserio - Page 7

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          the notices of deficiency.  Wherefore, we hold that respondent’s            
          motion to dismiss for lack of prosecution will be granted and a             
          decision entered against petitioner.                                        
          Respondent’s Motion for Damages Under Section 6673(a)(1)                    
               Under section 6673(a)(1), the Court may require a taxpayer             
          to pay a penalty not in excess of $25,000 if it appears that a              
          proceeding was instituted or maintained primarily for delay                 
          and/or a taxpayer’s position is frivolous or groundless and/or a            
          taxpayer fails unreasonably to pursue available administrative              
          remedies.  Respondent contends that petitioner failed to pursue             
          administrative remedies or cooperate in the development of this             
          case and that petitioner has, since 1992, advanced frivolous                
          positions in documents sent to respondent.                                  
               We have found petitioner’s argument that the Commissioner              
          and this Court have no authority or jurisdiction to determine               
          and/or decide that income of certain entities should be imputed             
          to petitioner to be frivolous.  Taxpayers have been making the              
          same argument for over a decade, and other courts have already              
          found such arguments to be frivolous.  In Sandvall v.                       
          Commissioner, 898 F.2d 455, 458 (5th Cir. 1990), affg. T.C. Memo.           
          1989-189 and T.C. Memo. 1989-56, a case involving substantially             
          the same type of determination as was made for petitioner herein,           
          the Court of Appeals for the Fifth Circuit rejected “as patently            
          frivolous the * * * [taxpayers’] contention that the Tax Court              

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