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judgment as a matter of law sustaining the notice of
determination dated December 6, 2001.
B. Imposition of a Penalty Under Section 6673
We turn now to that part of respondent’s motion that moves
for the imposition of a penalty on petitioner under section 6673.
As relevant herein, 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 penalty in lien and levy cases, Pierson v.
Commissioner, 115 T.C. 576, 580-581 (2000).
We shall deny that part of respondent’s motion that requests
the imposition of a penalty pursuant to section 6673(a)(1).
Nevertheless, we shall take this opportunity to admonish
petitioner that the Court will seriously consider imposing such a
penalty should he return to the Court and advance similar
arguments in the future.
In order to give effect to the foregoing,
An appropriate order granting
respondent’s motion in part and
denying respondent’s motion in
part and decision for respondent
will be entered.
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