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file returns and litigate. Coleman v. Commissioner, 791 F.2d 68,
71 (7th Cir. 1986); see also Grasselli v. Commissioner, T.C.
Memo. 1994-581 (quoting Coleman). A petition to the Tax Court is
frivolous if it is contrary to established law and unsupported by
a reasoned, colorable argument for change in the law. Id. The
petition contains numerous frivolous arguments. Moreover, the
record is replete with evidence of delay, and it is clear that
petitioners unreasonably failed to pursue available
administrative remedies. We need not find specific damages to
impose a penalty under section 6673(a)(1); rather, that section
is a penalty provision, intended to deter and penalize frivolous
claims and positions in deficiency proceedings. Bagby v.
Commissioner, 102 T.C. 596, 613-614 (1994). Petitioners do not
here argue for any change in the law, and, notwithstanding that,
technically, petitioners do not here prevail because of their
failure to prove their case, there are numerous cases that
establish that taxpayers cannot use trusts, as petitioners appear
to have done, to avoid tax or shift income from one taxpayer to
another. See, e.g., Zmuda v. Commissioner, 79 T.C. 714 (1982),
affd. 731 F.2d 417 (9th Cir. 1984); Vercio v. Commissioner, 73
T.C. 1246 (1980); Wesenberg v. Commissioner, 69 T.C. 1005 (1978);
Barmes v. Commissioner, T.C. Memo. 2001-155; Matrixinfosys Trust
v. Commissioner; T.C. Memo. 2001-133; Muhich v. Commissioner,
T.C. Memo. 1999-192, affd. 238 F.3d 860 (7th Cir. 2001); Alsop v.
Commissioner, T.C. Memo. 1999-172; Harrold v. Commissioner, T.C.
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