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(respondent’s January 11, 2005 letter), which stated in pertinent
part:
On November 12, 2004, our office received a docu-
ment from you captioned “Notice of Response In the Form
of An Affidavit Under 5 USC.” This document asserts
frivolous arguments related to your liability for the
unpaid taxes, and demands that our office answer ques-
tions and produce documents pursuant to Tax Court Rules
71 and 72. * * *
* * * * * * *
Our office is prepared to discuss any relevant
issues. However, we are under no obligation to discuss
frivolous issues such as those raised by you in the
Petition in this case. Furthermore, many of your
arguments relate to whether you in fact owe the 1997,
1998, and 1999 federal income taxes assessed against
you by the IRS. On February 11, 2002, the IRS mailed a
statutory notice of deficiency for these income taxes
to your last known address. A complete copy of this
notice of deficiency is enclosed. You in fact received
this notice of deficiency. See “Notice of Response...”
(wherein you state “I responded by letter to the Notice
of Deficiency...”). Because you received a notice of
deficiency for your 1997, 1998, and 1999 income taxes,
you are prohibited from disputing either the existence
and amounts of these tax liabilities in this proceed-
ing. I.R.C. � 6330(c)(2)(B).
* * * * * * *
Under I.R.C. � 6673, the Court may award a penalty
to the United States in an amount up to $25,000 when
the proceeding has been instituted or maintained by a
taxpayer primarily for delay, or if the taxpayer’s
position in the proceeding is frivolous or groundless.
In Pierson v. Commissioner, 115 T.C. 576, 581 (2000),
this Court issued an unequivocal warning to taxpayers
concerning the imposition of damages under section 6673
on those taxpayers who abuse the protections afforded
by section 6320 and 6330. Furthermore, in later
lien/levy cases, this Court has imposed section 6673
damages against taxpayers who asserted frivolous argu-
ments. See, e.g., Bradshear [sic] v. Commissioner,
T.C. Memo. 2003-196. If you continue to assert frivo-
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