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C. Whether To Impose a Penalty Under Section 6673
We consider on our own motion whether this Court should
impose a penalty against petitioner under section 6673(a). The
Court may require the taxpayer to pay a penalty to the United
States of not more than $25,000 if the taxpayer instituted or
maintained proceedings primarily for delay, if the taxpayer’s
position is frivolous or groundless, or if the taxpayer
unreasonably failed to pursue administrative remedies. Sec.
6673.
In remanding petitioner’s 1990-91 years, we warned him that,
if he used the hearing to raise only frivolous issues as he did
in Nestor v. Commissioner, supra, we would consider an
appropriate dispositive motion and imposition of a penalty under
section 6673. Despite this, petitioner persisted in maintaining
frivolous positions in his response to the order to show cause,
and he sought to delay a hearing relating to his 1990-91 tax
years. Petitioner’s attempt to delay the hearing for 5 months,
his failure to reschedule it, and his continuing to make
frivolous arguments show that petitioner maintained this
proceeding primarily for delay, his positions in this proceeding
are frivolous and groundless, and he unreasonably failed to
pursue administrative remedies. Sec. 6673(a)(1). We do not
countenance the use of this Court, and lien and levy procedures
under section 6330, by taxpayers to pursue frivolous arguments
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Last modified: May 25, 2011