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Petitioner has failed to raise a spousal defense, make a
valid challenge to the appropriateness of respondent’s intended
collection action, or offer alternative means of collection.
These issues are now deemed conceded. Rule 331(b)(4).
Accordingly, we conclude that respondent did not abuse his
discretion, and we sustain respondent’s determination.
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.
In Pierson v. Commissioner, 115 T.C. 576, 581 (2000), we issued
an unequivocal warning to taxpayers concerning the imposition of
a penalty pursuant to section 6673(a) on those taxpayers who
abuse the protections afforded by sections 6320 and 6330 by
instituting or maintaining actions under those sections primarily
for delay or by taking frivolous or groundless positions in such
actions.
In the petition, petitioner raised frivolous arguments and
contentions that we have previously rejected and which we
conclude were interposed primarily for delay.2 This has caused
2 In the case at bar, petitioner appears to be following a
strategy similar to the one provided to him at the hearing by
Thomas Smith. Although these frivolous arguments may have been
provided by Mr. Smith, it was petitioner’s choice to follow this
bad advice, and petitioner must face the consequences of his
actions.
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Last modified: May 25, 2011