G. Robert Lyman and Shari Lee Wright Lyman - Page 10

                                       - 10 -                                         
          return, petitioners’ attachment to their 1998 joint return, and             
          petitioners’ attachment to Form 12153, petitioners’ response                
          contains contentions, arguments, and requests that the Court                
          finds to be frivolous and/or groundless.6                                   
               Based upon our examination of the entire record before us,             
          we find that respondent did not abuse respondent’s discretion in            
          determining to proceed with the collection actions as determined            
          in petitioners’ notices of determination with respect to peti-              
          tioners’ taxable years 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-           

               6The contentions, arguments, and requests set forth in                 
          petitioners’ response are very similar to the contentions,                  
          arguments, and requests set forth in responses by certain other             
          taxpayers with cases in the Court to motions for summary judgment           
          and to impose a penalty under sec. 6673 filed by the Commissioner           
          of Internal Revenue in such other cases.  See, e.g., Smith v.               
          Commissioner, T.C. Memo. 2003-45.                                           

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011