Albert Horton and Ramona Osborne - Page 12

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          determining to proceed with the collection action as determined             
          in petitioners’ notices of determination with respect to peti-              
          tioners’ unpaid liabilities for 1997 and 1998.                              
               In respondent’s motion, respondent requests that the Court             
          require petitioners to pay a penalty to the United States pursu-            
          ant 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            
          maintained 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.                                                                    
               In the instant case, petitioners advance, 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 petitioners                
          pursuant to section 6673(a)(1) in the amount of $4,400.                     






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