- 2 - that petitioner must pay respondent and the amount of respondent’s costs under section 6673(a)(2) that petitioner’s counsel, Noel W. Spaid, must pay respondent. Background This case was tried in 2001 over 2 days separated by more than 5 months. In Edwards v. Commissioner, T.C. Memo. 2002-169, we held petitioner had failed to report income in 1996, was not entitled to various deductions claimed for 1996 and 1997, and was liable for accuracy-related penalties under section 6662(a). We also found petitioner had unreasonably failed to pursue administrative remedies and had taken frivolous and groundless positions and would be liable for a penalty under section 6673(a)(1) in an amount to be determined; we also found Ms. Spaid had recklessly and knowingly made frivolous arguments on petitioner’s behalf and that she would be required to pay, under section 6673(a)(2), respondent’s excess costs, expenses, and attorney’s fees. We deferred setting the penalty under section 6673(a)(1) and Ms. Spaid’s liability under section 6673(a)(2) until the parties responded to our inquiries into respondent’s excess costs attributable to the misconduct of petitioner and Ms. Spaid. We ordered respondent to submit an affidavit of costs, expenses, and attorney’s fees that could appropriately be taken into account in determining the penalty on petitioner under section 6673(a)(1) and Ms. Spaid’s liability to respondent underPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011