Deborah Carman Goodin - Page 13

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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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