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arguments through his posttrial brief. Apparently petitioner
expects that, if he feigns sincere belief, he will avoid
penalties. Petitioner is obviously intelligent and articulate,
but he has persevered too long to have any credibility. Serious
sanctions are necessary to deter him and others similarly
situated. Under these circumstances, section 6673 provides in
relevant part:
SEC. 6673(a). Tax Court Proceedings.--
(1) Procedures instituted primarily for
delay, etc.--Whenever it appears to the Tax Court
that--
(A) proceedings before it have been
instituted or maintained by the taxpayer
primarily for delay,
(B) the taxpayer’s position in such
proceeding is frivolous or groundless, or
(C) the taxpayer unreasonably failed to
pursue available administrative remedies,
the Tax Court, in its decision, may require the
taxpayer to pay to the United States a penalty not
in excess of $25,000.
Petitioner was specifically warned by respondent and by the Court
of the likelihood of a penalty under section 6673 if he persisted
in his frivolous arguments, and he has persisted. He did so even
when the Court ordered briefs limited to the question of fraud.
See Granado v. Commissioner, 792 F.2d 91, 94 (7th Cir. 1986),
affg. T.C. Memo. 1985-237. A penalty will be awarded to the
United States in the amount of $20,000.
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