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the Tax Court, in its decision, may require the
taxpayer to pay to the United States a penalty not
in excess of $25,000.
Section 6673 is a penalty provision, intended to deter and
penalize frivolous claims and petitions. Cf. Bagby v.
Commissioner, 102 T.C. 596, 613-614 (1994). The purpose “is to
compel taxpayers to think and to conform their conduct to settled
principles before they file returns and litigate.” Takaba v.
Commissioner, supra at 295.
In this case, respondent did not move for summary judgment
or for a penalty, and the case was submitted fully stipulated.
Petitioners were specifically warned here, and taxpayers (and
their counsel) were warned in Pierson v. Commissioner, 115 T.C.
576, 581 (2000), and by the numerous subsequent cases, of the
likelihood of a penalty under section 6673 if they abused the
protections afforded by sections 6320 and 6330.
Petitioners in this case should be treated the same as
taxpayers similarly situated. They should not be treated the
same as taxpayers who abandon frivolous arguments before trial.
The Court takes judicial notice that, in three other cases on the
Cleveland calendar in which Mr. Jewett represented the taxpayers
in presenting frivolous claims in the petition, the taxpayers did
not pursue those claims at the time of trial. In two of those
cases, disposition was prior to trial by agreement of the
parties. In a third case, mentioned above, Mr. Jewett was
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