119 T.C. No. 18
UNITED STATES TAX COURT
BRIAN G. TAKABA, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 5454-99. Filed December 16, 2002
This case is before the Court to consider whether
P must pay a penalty pursuant to sec. 6673(a)(1),
I.R.C., and whether P’s counsel must pay certain of R’s
costs pursuant to sec. 6673(a)(2), I.R.C. P, initially
pro se, made frivolous arguments, which were continued
by P’s counsel, who further advocated the frivolous
argument that the regulations under sec. 861, I.R.C.,
establish that, although P is a U.S. citizen, P’s
income in the form of remuneration for services and
bank interest received from sources within the United
States is not subject to tax.
1. Held: P is liable for a penalty under sec.
6673(a)(1), I.R.C., since his position in this case is
frivolous.
2. Held, further, P’s counsel is liable for R’s
excess costs under sec. 6673(a)(2), I.R.C., since he
both knowingly and recklessly made frivolous arguments,
thus unreasonably and vexatiously multiplying these
proceedings.
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