David Andrew and Kathleen Stilwell Schmith - Page 17




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               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. at 580-581, and has in fact imposed a                
          penalty in a number of such cases.8                                         
               We are convinced that petitioners instituted the present               
          proceeding primarily for delay.  In this regard, it is clear that           
          petitioners regard this proceeding as nothing but a vehicle to              
          protest the tax laws of this country and to espouse their own               
          misguided views, which we regard as frivolous and groundless.               
          E.g., Tolotti v. Commissioner, T.C. Memo. 2002-86.  In short,               


               8  E.g., Roberts v. Commissioner, 118 T.C. 365 (2002)                  
          (imposing a penalty in the amount of $10,000); Schroeder v.                 
          Commissioner, T.C. Memo. 2002-190 (imposing sua sponte a penalty            
          in the amount of $1,000); Wagner v. Commissioner, T.C. Memo.                
          2002-180 (imposing a penalty in the amount of $4,000); Perry v.             
          Commissioner, T.C. Memo. 2002-165 (imposing a penalty in the                
          amount of $2,500); Crow v. Commissioner, T.C. Memo. 2002-149                
          (imposing a penalty in the amount of $1,500); Smeton v.                     
          Commissioner, T.C. Memo. 2002-140 (imposing a penalty in the                
          amount of $1,000); Newman v. Commissioner, T.C. Memo. 2002-135              
          (imposing a penalty in the amount of $1,000); Williams v.                   
          Commissioner, T.C. Memo. 2002-111 (imposing sua sponte a penalty            
          in the amount of $1,000); Yacksyzn v. Commissioner, T.C. Memo.              
          2002-99 (imposing a penalty in the amount of $1,000); Watson v.             
          Commissioner, T.C. Memo. 2001-213 (imposing a penalty in the                
          amount of $1,500); Davis v. Commissioner, T.C. Memo. 2001-87                
          (imposing a penalty in the amount of $4,000).                               





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