Ginger Harmornick - Page 12

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               B.  Imposition of a Penalty Under Section 6673                         
               We turn now to that part of respondent’s motion that moves             
          for the imposition of a penalty on petitioner under section 6673.           
               As relevant herein, section 6673(a)(1) authorizes the Tax              
          Court to require a taxpayer to pay to the United States a penalty           
          not in excess of $25,000 whenever it appears that proceedings               
          have been instituted or maintained by the taxpayer primarily for            
          delay or that the taxpayer's position in such proceeding is                 
          frivolous or groundless.  The Court has indicated its willingness           
          to impose such penalty in lien and levy cases.  See Pierson v.              
          Commissioner, 115 T.C. 576, 580-581 (2000).                                 

          petitioner’s statement at the hearing on Sept. 10, 2001, that she           
          intended to file tax returns for the years in issue as tantamount           
          to such a challenge, we note that a taxpayer’s receipt of a                 
          notice of deficiency, coupled with the taxpayer’s failure to file           
          a petition for redetermination with this Court, bars the taxpayer           
          from challenging the existence or amount of his or her underlying           
          tax liability.  Sec. 6330(c)(2)(B).  In this regard, we note that           
          the notices of deficiency that were issued to petitioner were not           
          returned undelivered to respondent by the U.S. Postal Service,              
          and that petitioner has not denied that she received those                  
          notices.  In any event, petitioner has adduced nothing to create            
          a triable issue of fact regarding the existence or amount of any            
          of her underlying liabilities.                                              

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