- 8 - 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.Page: Previous 1 2 3 4 5 6 7 8
Last modified: May 25, 2011