Christopher Kiley - Page 24

                                       - 24 -                                         
          Such potential issue is now deemed conceded.  Rule 331(b)(4).  In           
          the absence of a valid issue for review, we conclude that                   
          respondent is entitled to judgment as a matter of law sustaining            
          the notice of determination dated February 14, 2002.                        
               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, Pierson v.                   
          Commissioner, 115 T.C. 576, 580-581 (2000), and has in fact                 
          imposed a penalty in a number of such cases.12                              
               We are convinced that petitioner instituted the present                
          proceeding primarily for delay.  In this regard, it is clear that           
          petitioner regards this proceeding as nothing but a vehicle to              

               12  E.g., Craig v. Commissioner, 119 T.C.     (2002)                   
          (imposing a penalty in the amount of $2,500); Roberts v.                    
          Commissioner, 118 T.C. 365 (2002) (imposing a penalty in the                
          amount of $10,000); Rennie v. Commissioner, T.C. Memo. 2002-296             
          (imposing a penalty in the amount of $1,500); Tornichio v.                  
          Commissioner, T.C. Memo. 2002-291 (imposing a penalty in the                
          amount of $12,500); Keene v. Commissioner, T.C. Memo. 2002-277              
          (imposing a penalty in the amount of $5,000), and numerous other            
          cases cited therein at n.14.                                                

Page:  Previous  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  Next

Last modified: May 25, 2011