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frivolous or groundless or the proceedings were instituted
primarily for delay. Sec. 6673(a)(1)(B). A position maintained
by the taxpayer is frivolous if 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); Gilligan v. Commissioner, T.C. Memo. 2004-194.
Petitioner’s positions at trial that being paid is not a
taxable event and that respondent has refused to identify the
statutes that makes him liable to pay the taxes at issue are
frivolous. Petitioner had five previous cases in this Court and
has previously been found liable for the penalty under section
6673. He has had ample warning of the penalty under section
6673. We conclude that petitioner instituted these proceedings
primarily for delay and that he is liable for a penalty under
section 6673 of $12,500.
To reflect the foregoing and concessions by respondent,
Decision will be
entered under Rule 155.
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Last modified: May 25, 2011