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Commissioner, T.C. Memo. 2002-190; Williams v. Commissioner,
T.C. Memo. 2002-111.
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 that the
taxpayer’s position in such a proceeding is frivolous or
groundless. Sec. 6673(a)(1)(B). In Green v. Commissioner,
supra, the Court directed petitioner to review cases in which
taxpayers had asserted frivolous and groundless arguments.
Moreover, the Court went on to specifically warn petitioner of
the possible imposition of a penalty under section 6673(a)(1)
should petitioner continue to advance frivolous arguments in the
instant case. Id. After citing the cases that had imposed
penalties against taxpayers advancing these types of arguments,
including Roberts v. Commissioner, 118 T.C. 365, 372-373 (2002),
affd. 329 F.3d 1224 (11th Cir. 2003), in which a $10,000 penalty
was imposed, the Court stated: “Petitioner might therefore care
to review those cases and consider whether it is in his best
interest to persist in advancing such arguments.” Green v.
Commissioner, supra.
The taxpayer’s arguments in Roberts were substantially
similar to the frivolous arguments asserted by petitioner in the
instant case. Despite the warning of this Court, petitioner has
continued to assert these groundless arguments. Under the
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