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estimated tax for 1997.
Petitioners do not contend that they had reasonable cause
for failure to file their 1994, 1996, and 1997 returns or failure
to pay estimated tax for 1997. They offered no evidence showing
that they are not liable for those additions to tax. We conclude
that petitioners are liable for the additions to tax under
section 6651(a) for failure to file for 1994, 1996, and 1997, and
under section 6654 for failure to pay estimated tax for 1997.
C. Section 6673 Penalty
Respondent moved that the Court impose a penalty on
petitioners under section 6673 on the grounds that petitioners
instituted and maintained this case primarily for delay and that
their position is frivolous.
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 or groundless 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).
Petitioners contend that their arguments are not frivolous and
that they are not using this case for delay. We disagree.
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