Richard Rewerts - Page 8

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          was not an abuse of respondent’s discretion, and respondent may             
          proceed with collection.                                                    
               Respondent, in his motion for summary judgment, has not                
          asked the Court to impose a penalty under section 6673(a) against           
          petitioner.  The Court, however, may sua sponte impose a penalty.           
          Pierson v. Commissioner, 115 T.C. 576, 580 (2000); Jensen v.                
          Commissioner, T.C. Memo. 2004-120; Frey v. Commissioner, T.C.               
          Memo. 2004-87.                                                              
               Section 6673(a)(1) authorizes the Court to require a                   
          taxpayer to pay the United States a penalty in an amount not to             
          exceed $25,000 whenever it appears to the Court the taxpayer’s              
          position in such a proceeding is frivolous or groundless.  Sec.             
          6673(a)(1)(B).  In the present case, there is no evidence that              
          petitioner has previously been a litigant in the Court.                     
          Moreover, there is no evidence that a warning was given to                  
          petitioner of the possible imposition of a penalty if he                    
          continued making his arguments.  Therefore, we decline to impose            
          a penalty under section 6673(a), but admonish petitioner that if            
          he persists in pursuing frivolous arguments before the Court in             
          the future, we may not be so favorably inclined.  See Sides v.              
          Commissioner, T.C. Memo. 2004-141; Kaeckell v. Commissioner, T.C.           
          Memo. 2002-114.                                                             









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