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nevertheless, failed to ascertain from tax professionals whether
their returns were correctly prepared. These facts demonstrate
to the Court that petitioners made no reasonable effort to
ascertain their correct tax liabilities for the years at issue.
Stubblefield v. Commissioner, supra. On this record, the Court
sustains respondent on the section 6662(a) accuracy-related
penalties for the 3 years at issue.
Section 6673(a) authorizes the Court to require a taxpayer
to pay to the United States a penalty not exceeding $25,000 when,
in the Court's judgment, proceedings have been instituted or
maintained by the taxpayer primarily for delay or where the
taxpayer's position in the proceeding is frivolous or groundless.
Although petitioners conceded the deficiencies and challenged
only the penalties under section 6662(a), the Court considers
petitioners' claim that they should not be liable for the
penalties to be frivolous and groundless. Petitioners knew that
a substantial portion of the itemized deductions at issue was
false and could not be sustained. Other circumstances noted
above need not be repeated here.
The function of this Court is to provide a forum to decide
issues relating to liability for Federal taxes. At trial,
petitioners realized that they had no case with respect to the
deficiencies but chose to continue to challenge the imposition of
the penalties under section 6662(a). Any reasonable and prudent
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