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B. Section 6673(a)(2) Liability of Mr. Sulla
1. Introduction
Section 6673(a)(2) empowers us to impose costs on an
attorney who has multiplied the proceedings in any case
unreasonably and vexatiously. Section 6673(a)(2) is a relatively
new provision, having been added to the Internal Revenue Code by
the Omnibus Budget Reconciliation Act of 1989, Pub. L. 101-239,
sec. 7731(a), 103 Stat. 2400. Section 6673(a)(2) is derived from
section 1927 of the Judicial Code, 28 U.S.C. sec. 1927 (1988).
See H. Rept. 101-247, at 1399-1400 (1989).
In Harper v. Commissioner, 99 T.C. 533, 545 (1992), we noted
the dearth of opinions interpreting and applying section
6673(a)(2), and relied upon case law under 28 U.S.C. sec. 1927
(1988) to ascertain the level of misconduct justifying sanctions.
The language of 28 U.S.C. sec. 1927 (1988)3 is substantially
identical to that of section 6673(a)(2), and the two statutes
serve the same purposes in different forums. See Johnson v.
Commissioner, 289 F.3d 452 (7th Cir. 2002), affg. 116 T.C. 111
(2001); Harper v. Commissioner, supra at 545. The interpretation
given section 6673(a)(2) and 28 U.S.C. sec. 1927 (1988) has
historically been the same.
3 Title 28 U.S.C. sec. 1927 (1988) provides: “Any attorney
* * * who so multiplies the proceedings in any case unreasonably
and vexatiously may be required by the court to satisfy
personally the excess costs, expenses, and attorneys’ fees
reasonably incurred because of such conduct.”
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