- 10 -
exception pursuant to section 6654(e) applies. We hold that
petitioner is liable for the addition to tax pursuant to section
6654(a).
III. Section 6673 Penalty
Section 6673(a)(1) authorizes this Court to require a
taxpayer to pay to the United States a penalty not to exceed
$25,000 if the taxpayer took frivolous positions in the
proceedings or instituted the proceedings primarily for delay. A
position maintained by the taxpayer is “frivolous” where it is
“contrary to established law and unsupported by a reasoned,
colorable argument for change in the law.” Coleman v.
Commissioner, 791 F.2d 68, 71 (7th Cir. 1986).
At trial, the Court advised petitioner that the arguments he
was advancing were frivolous and groundless. Furthermore, the
Court directed petitioner to several opinions of the U.S. Court
of Appeals for the Ninth Circuit, the court to which this case is
appealable, holding petitioner’s arguments to be frivolous and
groundless.7
Petitioner filed numerous frivolous documents and motions
with the Court before and after the trial. Petitioner’s
position, based on stale and meritless contentions, is manifestly
7 The Court apprised petitioner of the following cases:
Schramm v. Commissioner, 988 F.2d 121 (9th Cir. 1993), affg. T.C.
Memo. 1991-523; United States v. Ferrel, 925 F.2d 1471 (9th Cir.
1991); and Wilcox v. Commissioner, 848 F.2d 1007 (9th Cir. 1988),
affg. T.C. Memo. 1987-225.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011