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the Tax Court, in its decision, may require the
taxpayer to pay to the United States a penalty not
in excess of $25,000.
(2) Counsel’s liability for excessive costs.
–-Whenever it appears to the Tax Court that any
attorney or other person admitted to practice before
the Tax Court has multiplied the proceedings in any
case unreasonably and vexatiously, the Tax Court may
require--
(A) that such attorney or other person
pay personally the excess costs, expenses,
and attorneys’ fees reasonably incurred
because of such conduct * * *
III. Discussion
A. Section 6673(a)(1) Liability of Petitioner
Respondent asks that we impose damages on petitioner under
section 6673(a)(1) because petitioner “filed and maintained this
action primarily for delay” and “his position * * * is frivolous
or groundless.” Although disagreeing that he instituted or
maintained these proceedings primarily for delay, petitioner
virtually concedes that his initial arguments are frivolous:
“Prior to Petitioner’s counsel’s entry, the Petitioner was
maintaining several well known alleged ‘tax protester’ arguments
in reliance upon professional opinions dating back to 1995.” We
agree that petitioner’s initial arguments are frivolous. A
taxpayer’s position is frivolous if it is contrary to established
law and unsupported by a reasoned, colorable argument for a
change in the law. E.g., Nis Family Trust v. Commissioner, 115
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