Nicholas & Carrie Cozzens - Page 12

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          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.                      

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