- 8 -
apply in certain circumstances, see Grosshandler v. Commissioner,
75 T.C. 1, 20-21 (1980); however, petitioner has not shown that
he falls within any of those exceptions. Chambers v.
Commissioner, T.C.. Memo. 2000-218, affd. 17 Fed. Appx. 688 (9th
Cir. 2001); sec. 301.6651-1(f), Example (1), Proced. & Admin.
Regs. We hold that petitioner is liable for the section 6654(a)
additions to tax determined by respondent.
E. Section 6673(a)(1) Penalty
Respondent requests that we impose a penalty pursuant to
section 6673(a)(1). Under section 6673(a)(1), we may impose a
penalty not to exceed $25,000 if the taxpayer’s position is
“frivolous or groundless”.
Petitioner’s only argument is that the income tax is an
excise tax and that petitioner was not engaged in a taxable
excise activity. Those contentions are patently frivolous. See
Hart v. Commissioner, T.C. Memo. 2001-306. Accordingly, we shall
impose upon petitioner a penalty of $2,000.
Decision will be entered for
respondent except for the
additions to tax under section
6651(a)(2) which do not apply.
6(...continued)
tax years at issue. Sec. 6665(b)(2); Hart v. Commissioner, T.C.
Memo. 2001-306.
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