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1997 return. Thus, respondent is entitled to summary judgment
that petitioners may not deduct car and truck, office, and
mortgage interest expenses for 1997.
B. Whether Respondent Is Entitled to Summary Judgment Relating
to the Section 6673 Penalty
The Court may impose on a taxpayer a penalty of up to
$25,000 if the taxpayer instituted or maintained proceedings
primarily for delay, if the taxpayer's position is frivolous or
groundless, or if the taxpayer unreasonably failed to pursue
administrative remedies. Sec. 6673(a).
In their petition, petitioners contended: (1) They had no
unreported income or tax liability; (2) respondent failed to
identify Code sections which establish their liability for tax;
(3) respondent failed to provide them with certified assessment
information; (4) respondent failed to identify the person making
the adjustments on which the determination was based; (5) the
determination is a naked assessment because it is based on
hearsay evidence; and (6) respondent must show certified evidence
to support the determination before this case can proceed to
trial. The Court struck most of these allegations of error from
the petition for failure to state a claim. After the Court
ordered petitioners to amend their petition to raise justiciable
issues, petitioners filed an amended petition, most of which was
also stricken by the Court. Petitioners’ contentions are
frivolous, see Nestor v. Commissioner, 118 T.C. 162, 166-167
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