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estimated tax payments are less than 90 percent of petitioner’s
tax for 2001 ($7,042). Accordingly, respondent met his burden of
production.
Petitioner offered no credible evidence related to this
issue. No section 6654(e) exception applies. Accordingly, we
sustain respondent’s determination that petitioner is liable for
the addition to tax pursuant to section 6654(a) for 2001.
III. Section 6673(a)(1)
Section 6673(a)(1) authorizes this Court to require a
taxpayer to pay to the United States a penalty not to exceed
$25,000 if the taxpayer took frivolous positions in the
proceeding or instituted the proceedings primarily for delay. A
position maintained by the taxpayer is “frivolous” where it is
“contrary to established law and unsupported by a reasoned,
colorable argument for change in the law.” Coleman v.
Commissioner, 791 F.2d 68, 71 (7th Cir. 1986). In Parker v.
Commissioner, 724 F.2d 469, 472 (5th Cir. 1984), affg. T.C. Memo.
1983-75, the U.S. Court of Appeals for the Fifth Circuit, the
court which is the likely venue for appeal, gave a “cautionary
note to those who would persistently raise arguments against the
income tax which have been put to rest for years. The full range
of sanctions in Rule 38 hereafter shall be summoned in response
to a totally frivolous appeal.”
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