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All of petitioners’ arguments at trial and in documents
filed with the Court are frivolous. Petitioners did not offer
any evidence to support their claim that they had business
expenses in the years in issue. The Court told petitioners that
their arguments before and during trial were frivolous and that
we would consider imposing a penalty under section 6673 if
petitioners continued to maintain frivolous positions. Despite
this admonition, petitioners continued to make frivolous
arguments in this case.
In a prior case, the U.S. Court of Appeals for the Fifth
Circuit affirmed the dismissal of petitioners’ bankruptcy claims
and admonished petitioners for making allegations that bordered
on frivolous, relying on tax-protester rhetoric, and engaging in
meritless and time-consuming dealings with the Internal Revenue
Service to delay those proceedings. Johnston v. IRS, 80 AFTR 2d
97-7325, 97-2 USTC par. 50,867 (5th Cir. 1997).
We conclude that petitioners maintained these proceedings
primarily for delay and that their positions are frivolous. We
conclude that petitioners are liable for a penalty of $5,000
under section 6673.
Accordingly,
An appropriate order and decision
will be entered for respondent in
amounts consistent with the foregoing.
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