- 6 - At trial, respondent orally moved for imposition of the penalty against petitioner under section 6673. Section 6673(a)(1) authorizes this Court to require a taxpayer to pay a penalty to the United States, in an amount not to exceed $25,000, whenever it appears that proceedings have been instituted or maintained by such taxpayer primarily for delay, or that the taxpayer's position in a proceeding is frivolous or groundless. A petition in the Tax Court is frivolous "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). Petitioner was cautioned by the Court at trial that his argument was frivolous and had no merit. Accordingly, the Court grants respondent's oral motion and imposes a penalty of $750 against petitioner under section 6673(a). Reviewed and adopted as the report of the Small Tax Case Division. An appropriate Order and Decision will be entered for respondent.Page: Previous 1 2 3 4 5 6 7
Last modified: May 25, 2011