- 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.Page: Previous 1 2 3 4 5 6 7 8
Last modified: May 25, 2011