Tommy Ray Smith - Page 13




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          determining to proceed with the collection action as determined             
          in the notice of determination with respect to petitioner’s                 
          taxable year 1997.                                                          
               In respondent’s motion, respondent requests that the Court             
          require petitioner to pay a penalty to the United States pursuant           
          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 main-             
          tained 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, petitioner advances, 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 petitioner                 
          pursuant to section 6673(a)(1) in the amount of $500.                       






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