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Motion for Damages
In our previous letter to you dated January 11,
2005, we cautioned you that if you continued to assert
frivolous arguments, our office would file a motion
asking the Court to impose damages under I.R.C. � 6673.
Enclosed is a copy of a recent court opinion, Kilgore
v. Commissioner, T.C. Memo. 2005-24 (filed February 15,
2005). Kilgore is a collection due process case in
which the Tax Court granted the IRS’s motion for dam-
ages under section 6673, and ordered that taxpayer to
pay the United States a penalty of $10,000. Our office
is affording you one final opportunity to concede your
case, and thereby avoid a possible award of substantial
damages under section 6673. We urge you to read the
Kilgore decision carefully before deciding how to
proceed in your case. If you advise us, in writing, by
April 15, 2005, that you are conceding your case, we
will mail you an appropriate proposed Decision for the
parties to sign and file with the Tax Court. Other-
wise, we will proceed to prepare your case for trial,
and will, at trial, file a motion seeking damages.
OPINION
A taxpayer may raise challenges to the existence or the
amount of the taxpayer’s underlying tax liability if the taxpayer
did not receive a notice of deficiency or did not otherwise have
an opportunity to dispute the tax liability, sec. 6330(c)(2)(B),
including the tax liability reported in the return that such
taxpayer filed, Montgomery v. Commissioner, 122 T.C. 1 (2004).
Respondent did not issue a notice of deficiency with respect
to petitioner’s taxable year 2001. Nor did petitioner otherwise
have an opportunity to dispute his alleged tax liability for that
year. We shall review respondent’s determination de novo. Boyd
v. Commissioner, 117 T.C. 127, 131 (2001); Landry v. Commis-
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Last modified: May 25, 2011