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C. Section 6673
Section 6673(a)(1) authorizes the Court to require a
taxpayer to pay to the United States a penalty not to exceed
$25,000 if the taxpayer took frivolous positions in the
proceedings or instituted the proceedings primarily for delay. A
position maintained by the taxpayer is “frivolous” where 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); see also Hansen v.
Commissioner, 820 F.2d 1464, 1470 (9th Cir. 1987) (section 6673
penalty upheld because taxpayer should have known claim was
frivolous).
At the hearing, the Court warned petitioner that the
arguments he was advancing were frivolous and groundless, and
that the arguments had been rejected by the Courts.
Our authority and willingness to impose penalties pursuant
to 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 are well
established. Cf. Pierson v. Commissioner, 115 T.C. 576, 581
(2000). Petitioner filed a frivolous petition with the Court.
Petitioner’s position, based on stale and meritless contentions,
is manifestly frivolous and groundless, and he has wasted the
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