Holly Ruocco - Page 18




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          will reflect recomputation of the deficiencies to reduce the                
          unreported income attributed to petitioner in accordance with               
          this opinion.                                                               
               Even though petitioner’s tax liability will be reduced from            
          that determined in the notices of deficiency, we conclude that a            
          penalty under section 6673 should be imposed.  The reduction in             
          petitioner’s tax liability is not based on any evidence produced            
          or arguments made by petitioner.  The arguments made by                     
          petitioner have long been discredited and were asserted only for            
          purposes of delay.  Petitioner was warned in correspondence from            
          respondent’s counsel and in the conference telephone call with              
          the Court prior to trial that her arguments lacked merit and had            
          been the basis for sanctions in prior cases.  She nonetheless               
          persisted in making them and failed to take advantage of                    
          opportunities provided to her to establish her correct tax                  
          liability.  Based on the record in this case, a penalty is                  
          appropriate in the amount of $12,500.  See Lipari v.                        
          Commissioner, T.C. Memo. 2000-280.                                          
               To reflect the foregoing,                                              
                                                       An appropriate Order           
                                                  will be issued.                     











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