- 12 -
alternatives as part of his correspondence hearing. Petitioner
has failed to raise a spousal defense or make a valid challenge
to the appropriateness of respondent’s intended collection
action. These issues are now deemed conceded. See Rule
331(b)(4). Accordingly, we conclude that respondent did not
abuse his discretion, and we sustain respondent’s determination
to proceed with collection.
III. Section 6673(a)
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 to address the
issue of his underlying liability he needed to focus on the
issues in the notices of deficiency; i.e., whether he earned the
income determined, whether he had the gross receipts determined,
and whether he could prove entitlement to the deductions he
claimed. The Court advised petitioner, as we had in Aston I
(which petitioner tried immediately before this case), that the
arguments he was advancing were frivolous and groundless and had
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011