9 T.C. 365, 372-373 (2002), affd. 329 F.3d 1224 (11th Cir. 2003); Pierson v. Commissioner, 115 T.C. 576, 581 (2000). Petitioner's argument that the Federal income tax is unconstitutional because the 16th Amendment violates the 10th amendment is patently frivolous,3 and all other arguments he raised at various points in the proceeding are similarly groundless. He was expressly warned in the notice of determination that his constitutional argument was groundless and might result in a penalty under section 6673 in any Tax Court proceeding. He persisted with the argument throughout this proceeding, even after respondent's counsel provided him with authority holding the argument groundless. Moreover, petitioner previously received a $500 penalty under section 6673(a)(1) for making groundless arguments in the deficiency proceeding covering the liabilities at issue herein. Petitioner's groundless arguments and contumacious conduct have wasted the time and resources of respondent and this Court. While a more substantial penalty may be warranted, we shall impose a penalty pursuant to section 6673(a)(1) of $2,500, in light of the relatively modest size of the liabilities at issue. Petitioner is hereby warned, however, that should he advance frivolous or groundless arguments in this Court in the future, 3 See, e.g., Harrell v. Commissioner, 191 F.3d 456 (7th Cir. 1999), affg. without published opinion T.C. Memo. 1998-207.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011