- 5 -
The stipulated facts also satisfy respondent’s burden of
going forward with respect to additions to tax. See Cabirac v.
Commissioner, supra at 168; Higbee v. Commissioner, 116 T.C. 438,
447 (2001).
Petitioner was allowed time after the case was submitted to
respond to respondent’s motion for sanctions under section 6673,
which provides:
SEC. 6673(a). Tax Court Proceedings.--
(1) Procedures instituted primarily for
delay, etc.–-Whenever it appears to the Tax Court
that--
(A) proceedings before it have been
instituted or maintained by the taxpayer
primarily for delay,
(B) the taxpayer’s position in such
proceeding is frivolous or groundless, or
(C) the taxpayer unreasonably failed to
pursue available administrative remedies,
the Tax Court, in its decision, may require the
taxpayer to pay to the United States a penalty not
in excess of $25,000.
Petitioner did not file a response to the motion. Because
petitioner’s arguments are frivolous and groundless and because
the record compels the conclusion that this proceeding was
instituted and maintained primarily for delay, respondent’s
motion will be granted, and a penalty will be awarded to the
United States in the amount of $10,000.
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