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appropriateness of respondent’s tax lien. Petitioner failed to
take advantage of the opportunity. Rather, he chose to espouse
groundless and frivolous arguments. Consequently, there is no
basis for us to conclude that it was an abuse of discretion for
respondent to determine that the filing of a Federal tax lien in
the instant situation was appropriate.
We now turn to whether, pursuant to section 6673, we should
require petitioner to pay a penalty to the United States, and if
so the amount thereof. Section 6673 provides, in part, that
whenever it appears to the Tax Court that proceedings before it
have been instituted or maintained by the taxpayer primarily for
delay or the taxpayer’s position in such proceeding is frivolous
or groundless, the Tax Court, in its decision, may require the
taxpayer to pay the United States a penalty not in excess of
$25,000. Petitioner’s position in this case is frivolous as well
as groundless. Although petitioner was informed that his
position has been rejected consistently by the courts, he
nonetheless continued to advance it.
We have no doubt that petitioner, an educated individual,
maintained this proceeding primarily to delay the day the IRS
could collect taxes he owes for 1996 and 1997. Petitioner has
wasted the time of respondent’s agents and counsel as well as the
time of this Court. We therefore impose a penalty of $10,000 on
petitioner under section 6673.
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Last modified: May 25, 2011