- 14 -
consulted a legal research firm that reported to him: “That they
found no case, rule, or regulation addressing the argument that
domestic and foreign source rules under Section 861, modify or
limit the definition of gross income under Section 61.”
Discussion
I. Introduction
By the motion for damages, respondent has asked that we
impose a penalty on petitioner in the amount of $25,000, or in
such lesser amount that we deem appropriate, pursuant to section
6673(a)(1). On our own, because of Mr. Sulla’s advocacy of
petitioner’s positions in this case, we have ordered Mr. Sulla to
show cause why we should not impose costs on him pursuant to
section 6673(a)(2).
II. Section 6673
In pertinent part, section 6673 provides:
SEC. 6673 SANCTIONS AND COSTS AWARDED BY COURTS
(a) Tax Court Proceedings.--
(1) Procedures instituted primarily for
delay, etc.–-Whenever it appears to the Tax Court
that--
(A) proceedings before it have been
instituted or maintained by the taxpayer
primarily for delay,
(B) the taxpayer’s position in such
proceeding is frivolous or groundless, or
(C) the taxpayer unreasonably
failed to pursue available
administrative remedies,
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011