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and petitioner is not liable for the addition to tax pursuant to
section 6654(a) for 2001.
III. Section 6673
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 or groundless positions in
the proceedings 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); see also Hansen v.
Commissioner, 820 F.2d 1464, 1470 (9th Cir. 1987) (section 6673
penalty upheld because taxpayer should have known claim was
frivolous).
Petitioner’s only argument in this case was that his income
was not taxable. Petitioner was advised at the 2001 trial and at
the trial of the instant case of the Code provisions regarding
the taxability of his income. We advised petitioner at the 2001
trial that his arguments were frivolous. We conclude petitioner
advanced frivolous and groundless positions in these proceedings.
We also are convinced that petitioner instituted the
proceedings primarily for delay. In addition to again advancing
an argument the Court advised him was frivolous at the 2001 trial
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