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Whenever it appears to the Tax Court that --
(A) proceedings before it have been
instituted or maintained by the taxpayer
primarily for delay, (or)
(B) the taxpayer’s position in such
proceeding is frivolous or groundless, * * *
the Tax Court, in its decision, may require
the taxpayer to pay to the United States a
penalty not in excess of $25,000.
In the event that petitioner continues to advance
frivolous and/or groundless contentions and arguments,
the Court will be inclined to impose a penalty not in
excess of $25,000 on petitioner under section
6673(a)(1).
In an order dated February 4, 2002, the Court granted a
similar motion by respondent for a protective order. In that
order, petitioner was again cautioned that the Court would be
inclined to impose a penalty under section 6673(a)(1) if he
continued to advance frivolous and/or groundless arguments.
In December 2001, respondent served petitioner with
interrogatories and requests for the production of documents and
admissions. Petitioner’s answers to respondent’s requests for
production of documents, interrogatories, and admissions
indicated that he was asserting his Fifth Amendment privilege
against self-incrimination. Respondent filed motions to compel
production of documents, to compel responses to interrogatories,
and to review sufficiency of petitioner’s response to request for
admissions. A hearing on respondent’s motions was held on March
11, 2002, in Jacksonville, Florida. At the hearing, counsel for
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Last modified: May 25, 2011