- 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 Next
Last modified: May 25, 2011