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.
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