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position maintained by a taxpayer in the Tax Court is frivolous
“if it is contrary to established law and unsupported by a
reasoned, colorable argument for change in the law.” Coleman v.
Commissioner, 791 F.2d 68, 71 (7th Cir. 1986). A penalty is
properly imposed when the taxpayer knew or should have known that
his claim or argument was frivolous. See Hansen v. Commissioner,
820 F.2d 1464, 1470 (9th Cir. 1987).
We find that petitioner’s arguments are frivolous. He has
caused this Court to waste its limited resources on his erroneous
views of the tax law which he should have known are completely
without merit. In view of the foregoing, the Court will exercise
our discretion under section 6673(a)(1), sua sponte, and require
petitioner to pay a penalty to the United States in the amount of
$1,500.
To reflect the foregoing,
Decision will be
entered for respondent.
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Last modified: May 25, 2011