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from petitioner for 1992. The stipulation of settlement also
provided that the Court may enter a decision for these amounts,
interest will be assessed on the deficiency and penalty, and
petitioner waived the restrictions on assessment and collection
of the deficiency, penalty, and interest.
Discussion
We consider whether petitioner has engaged in behavior that
warrants imposition of a penalty pursuant to section 6673.
Section 6673(a)(1) authorizes the Tax Court to require a taxpayer
to pay to the United States a penalty not in excess of $25,000
whenever it appears that proceedings have been instituted or
maintained by the taxpayer primarily for delay or that the
taxpayer’s position in such proceeding is frivolous or
groundless.
Petitioner now admits that his position was frivolous and
groundless. This was the first time petitioner pursued these
arguments in administrative or legal proceedings. Petitioner
stated to the Court that he did not intend to make these
arguments in the future or appear in the Court again, and
petitioner understood he owed taxes on income he earned and
income taxes are constitutional. Petitioner agreed to sign the
stipulation of settlement which listed the amount of deficiency
and addition to tax owed, and petitioner promptly signed the
stipulation of settlement.
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Last modified: May 25, 2011