Robert Rodriguez - Page 8

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          C.  Penalty Under Section 6673(a)                                           
               Respondent moved the Court at the end of trial to impose a             
          penalty under section 6673(a)(1).  Respondent asserts that                  
          petitioner’s position in this case is frivolous and groundless.             
          Respondent also asserts that petitioner instituted these                    
          proceedings primarily for the purpose of delay.                             
               Section 6673(a)(1) authorizes the Court to require a                   
          taxpayer to pay to the United States a penalty of up to $25,000             
          whenever it appears that proceedings have been instituted or                
          maintained by the taxpayer primarily for delay or that the                  
          taxpayer’s position in such proceeding is frivolous or                      
          groundless.  Here, petitioner did not offer any evidence at                 
          trial, nor did he otherwise make any legitimate attempt to prove            
          respondent’s determinations wrong.  Petitioner was warned by                
          respondent before trial and was warned by the Court during trial            
          that his position (or lack thereof) was without merit and could             
          subject him to a penalty of up to $25,000 under section 6673(a).            
          Petitioner disregarded these warnings and has consumed wastefully           
          the time, resources, and effort of the Court.  We conclude from             
          the record that petitioner’s positions in this proceeding are               
          frivolous and without merit.  We also conclude from the record              
          that petitioner has instituted and maintained this proceeding               
          primarily for delay.  Pursuant to section 6673, we require                  
          petitioner to pay to the United States a penalty of $10,000.                






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