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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.
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Last modified: May 25, 2011