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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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