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statements, contentions, and arguments that he was advancing in
his trial memorandum and that he attempted to advance at trial
were frivolous and/or groundless. Moreover, the Court reminded
petitioner before and during trial about section 6673(a)(1) and
admonished him that, in the event he continued to make frivolous
and/or groundless statements, contentions, and arguments, the
Court would be inclined to impose a penalty on him under that
section. Nonetheless, petitioner persisted throughout the course
of the proceedings in this case in advancing frivolous and/or
groundless questions, statements, contentions, and arguments.
Section 6673(a)(1) authorizes the Court to impose a penalty
in favor of the United States in an amount not to exceed $25,000
whenever it appears that a taxpayer’s position in a proceeding is
frivolous and/or groundless or that the taxpayer institutes or
maintains a proceeding in the Court primarily for delay.
On the instant record, we find that petitioner’s position in
this case is frivolous and/or groundless5 and that he instituted
and maintained this proceeding primarily for delay. Accordingly,
we shall impose a penalty on petitioner under section 6673(a)(1)
in the amount of $500.
5Although not pled in the petition, petitioner argues for
the first time in petitioner’s supplement to petitioner’s trial
memorandum that the period of limitations under sec. 6501 with
respect to his taxable year 1997 has expired. That argument is
groundless. Petitioner did not file a tax return for 1997. We
hold that the period of limitations for that year has not ex-
pired. Sec. 6501(c)(3).
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