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warning given at the section 6330 hearing and the warning given
by the Court, petitioners did not abandon their frivolous
arguments but authorized Mr. Jewett to continue to assert them.
Petitioners should be treated the same as other taxpayers
similarly situated. As we stated in Brodman v. Commissioner,
supra: “The taxpayers who continue to pursue those claims are
not entitled to a free ride.” As a result, we hold that a
penalty of $5,000 against petitioners should be awarded to the
United States pursuant to section 6673(a)(1).
Moreover, we are concerned by the representation of Mr.
Jewett, an experienced attorney, in petitioners’ pursuit of these
frivolous claims. All of Mr. Jewett’s arguments on behalf of
petitioners had been rejected by the Court in numerous cases.
Although, as in Brodman, we have decided not to impose a
penalty against Mr. Jewett under section 6673(a)(2),4 he is
3(...continued)
maintained by the taxpayer primarily for delay,
(B) the taxpayer’s position in such proceeding is
frivolous or groundless, or
(C) the taxpayer unreasonably failed to pursue
available administrative remedies,
the Tax Court, in its decision, may require the taxpayer to
pay to the United States a penalty not in excess of $25,000.
4 Sec. 6673(a)(2) provides, in part:
(2) Counsel’s liability for
excessive costs.--Whenever it appears to
(continued...)
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