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In respondent’s motion, respondent requests that the Court
require petitioner to pay a penalty to the United States pursuant
to section 6673(a)(1). Section 6673(a)(1) authorizes the Court
to require a taxpayer to pay to the United States a penalty in an
amount not to exceed $25,000 whenever it appears to the Court,
inter alia, that a proceeding before it was instituted or main-
tained primarily for delay, sec. 6673(a)(1)(A), or that the
taxpayer’s position in such a proceeding is frivolous or ground-
less, sec. 6673(a)(1)(B).
In Pierson v. Commissioner, 115 T.C. 576, 581 (2000), we
issued an unequivocal warning to taxpayers concerning the imposi-
tion of a penalty under section 6673(a) on those taxpayers who
abuse the protections afforded by sections 6320 and 6330 by
instituting or maintaining actions under those sections primarily
for delay or by taking frivolous or groundless positions in such
actions.3
In the instant case, petitioner advances, we believe primar-
ily for delay, frivolous and/or groundless contentions, argu-
ments, and requests, thereby causing the Court to waste its
limited resources. We shall impose a penalty on petitioner
pursuant to section 6673(a)(1) in the amount of $2,000.
3The record in this case reflects that the Appeals officer
gave petitioner a copy of the Court’s opinion in Pierson v.
Commissioner, 115 T.C. 576 (2000), and warned petitioner that the
Court could impose penalties on petitioner for making frivolous
arguments to the Court.
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Last modified: May 25, 2011