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Section 6673(a) authorizes the Tax Court to require a
taxpayer to pay to the United States a penalty not in excess of
$25,000 whenever it appears that proceedings have been instituted
or maintained by the taxpayer primarily for delay or that the
taxpayer’s position in such proceeding is frivolous or
groundless. Petitioner was specifically warned of the likelihood
of a penalty under section 6673 if he persisted in his frivolous
arguments. Petitioner was ordered to show cause why a penalty
under section 6673(a) should not be imposed. Petitioner’s
response was frivolous. Further, subsequent to the issuance of
the Order to show cause petitioner filed four separate motions,
all of which are frivolous. Petitioner has persisted. Serious
sanctions are necessary to deter petitioner and others similarly
situated. Takaba v. Commissioner, 119 T.C. 285, 295 (2002);
Hamzik v. Commissioner, T.C. Memo. 2004-223. We shall impose a
penalty on petitioner pursuant to section 6673(a) in the amount
of $15,000.
To reflect the foregoing,
An appropriate order and
decision will be entered.
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Last modified: May 25, 2011