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We note that 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 the proceeding has been
instituted or maintained by the taxpayer primarily for delay or
that the taxpayer's position in such proceedings is frivolous or
groundless. In this case, we conclude that the position advanced
by petitioner is frivolous and groundless. Nevertheless,
respondent has not asked for penalties under section 6673 to be
imposed, and we choose not to do so at this time. We caution
petitioner that such penalties under section 6673 may be imposed
if he continues to advance the same frivolous and groundless
arguments in the future.
Reviewed and adopted as the report of the Small Tax Case
Division.
To reflect the forgoing,
Decision will be
entered for respondent.
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Last modified: May 25, 2011