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as to a material fact, it follows that respondent is entitled to
judgment as a matter of law sustaining the notice of
determination dated July 12, 2001.
Section 6673(a)(1) authorizes the Tax Court to require a
taxpayer to pay to the United States a penalty not in excess of
$25,000 whenever it appears that proceedings have been instituted
or maintained by the taxpayer primarily for delay or that the
taxpayer’s position in such proceeding is frivolous or
groundless. The Court has indicated its willingness to impose
such penalties in collection review cases. Pierson v.
Commissioner, 115 T.C. 576 (2000). Although we shall not impose
a penalty upon petitioners pursuant to section 6673(a)(1), we
admonish petitioners that the Court will consider imposing such a
penalty should they return to the Court and advance similar
arguments in the future.
To reflect the foregoing,
An order and decision will be
entered granting respondent’s
motion for summary judgment and
denying respondent’s request for
the imposition of a penalty
pursuant to section 6673(a).
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