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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 action as determined
in the notice of determination with respect to petitioner’s
unpaid liability for each of his taxable years 1987, 1988, 1989,
1993, 1994, and 1995.
Although respondent does not ask the Court to impose a pen-
alty on petitioner under section 6673(a)(1), the Court will sua
sponte determine whether to impose such a penalty. 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 proceed-
ing is frivolous or groundless, 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.7
7In an Order dated Jan. 10, 2003, in response to respon-
dent’s motion for protective order, the Court reminded petitioner
(continued...)
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