- 10 - 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, 166-167Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011