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the obvious reservations petitioner had at the time the returns
were prepared, he, nevertheless, failed to ascertain from tax
professionals whether his returns were correctly prepared. These
facts demonstrate to the Court that petitioner made no reasonable
effort to ascertain his correct tax liability for the years at
issue. Stubblefield v. Commissioner, supra. On this record, the
Court sustains respondent on the section 6662(a) accuracy-related
penalties for the 2 years at issue.
Section 6673(a) authorizes the Court to require a taxpayer
to pay to the United States a penalty not exceeding $25,000 when,
in the Court's judgment, proceedings have been instituted or
maintained by the taxpayer primarily for delay or where the
taxpayer's position in the proceeding is frivolous or groundless.
Although petitioner conceded the deficiencies and challenged only
the penalties under section 6662(a), the Court considers
petitioner's claim that he should not be liable for the penalties
to be frivolous and groundless. Petitioner knew that a
substantial portion of the itemized deductions at issue was false
and could not be sustained. Other circumstances noted above need
not be repeated here.
The function of this Court is to provide a forum to decide
issues relating to liability for Federal taxes. At trial,
petitioner realized that he had no case with respect to the
deficiencies but chose to continue to challenge the imposition of
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Last modified: May 25, 2011