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instituted or maintained primarily for delay, sec. 6673(a)(1)(A),
or that the taxpayer’s position in such a proceeding is frivolous
or groundless, sec. 6673(a)(1)(B).
In Pierson v. Commissioner, 115 T.C. 576 (2000), we issued
an unequivocal warning to taxpayers concerning the imposition of
a penalty under section 6673(a) on those taxpayers who abuse the
protections afforded by sections 6320 and 6330 by instituting or
maintaining actions under those sections primarily for delay or
by taking frivolous or groundless positions in such actions. In
respondent’s January 11, 2005 letter, respondent advised peti-
tioner of the holding in Pierson v. Commissioner, supra, and
cautioned petitioner that if she continued to assert frivolous
arguments, respondent would request that the Court impose a
penalty on her under section 6673. On March 31, 2005, the Court
issued an Order in which, inter alia, the Court reminded peti-
tioner about section 6673(a)(1) and indicated that if petitioner
continued to advance statements, contentions, arguments, and/or
requests that the Court found to be frivolous and/or groundless,
the Court would be inclined to impose on petitioner a penalty not
in excess of $25,000 under section 6673(a)(1).
Nonetheless, in the instant case, petitioner alleged in
petitioner’s attachment to the petition, argued in petitioner’s
motion to dismiss, and advances in petitioner’s response and
petitioner’s supplement to petitioner’s response, we believe
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