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failed to meet his burden of proof and sustain respondent’s
determination as to this issue.
For the foregoing reasons, we hold that petitioner is liable
for deficiencies in Federal income taxes, as well as additions to
tax under sections 6651(a)(1) and 6654, for 1991-97.
C. Penalty Under Section 6673(a)
The Court may impose on a taxpayer a penalty of up to
$25,000 if the taxpayer instituted or maintained proceedings
primarily for delay, if the taxpayer’s position is frivolous or
groundless, or if the taxpayer unreasonably failed to pursue
administrative remedies. Sec. 6673. A taxpayer’s position is
frivolous “if it is contrary to established law and unsupported
by a reasoned, colorable argument for change in the law.”
Coleman v. Commissioner, 791 F.2d 68, 71 (7th Cir. 1986); Booker
v. Commissioner, T.C. Memo. 1996-261; see also Hansen v.
Commissioner, 820 F.2d 1464, 1470 (9th Cir. 1987) (trial court’s
finding that taxpayer should have known that claim was frivolous
allows for section 6673 penalty). A taxpayer’s failure to
provide the Commissioner with information requested and his
failure to offer evidence at trial pertaining to the substantive
issues raised in the notice of deficiency are evidence that a
suit in this Court was instituted primarily for delay. Stamos v.
Commissioner, 95 T.C. 624, 638 (1990), affd. without published
opinion 956 F.2d 1168 (9th Cir. 1992).
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