- 12 - liabilities for 1998 and 1999, see id.6 Based upon our examination of the entire record before us, we find that respondent did not abuse respondent’s discretion in determining to proceed with the collection action as determined in the notice of determination with respect to petitioners’ taxable years 1998 and 1999. Although respondent does not ask the Court to impose a penalty on petitioners under section 6673(a)(1), we now consider sua sponte whether the Court should impose a penalty on petition- ers under that section. Section 6673(a)(1) authorizes the 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 a taxpayer instituted or maintained a proceeding in the Court primarily for delay or that a taxpayer's position in such a proceeding is frivolous or groundless. Although we shall not impose a penalty under section 6673(a)(1) on petitioners in the instant case, we caution them that they may be subject to such a penalty if in the future they institute or maintain a proceeding in this Court primarily for delay and/or their position in any such proceeding is frivolous or groundless. See Abrams v. Commissioner, 82 T.C. 403, 409-413 (1984); White v. Commissioner, 72 T.C. 1126, 1135-1136 (1979). We have considered all of petitioners’ statements, conten- 6See Kemper v. Commissioner, T.C. Memo. 2003-195.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011