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Section 6654(a) provides for an addition to tax for failure
to pay estimated income tax where there has been an underpayment
of estimated taxes by a taxpayer. Respondent produced evidence
that petitioner did not pay any estimated tax for 2001. Since
the Court finds that petitioner’s situation does not fall within
any of the specified exceptions under section 6654(e), petitioner
is also liable for this addition to tax.
IV. Section 6673 Penalty
Section 6673 allows this Court to award a penalty to the
United States in an amount not in excess of $25,000 for
proceedings instituted by the taxpayer primarily for delay or for
proceedings in which the taxpayer’s position is frivolous or
groundless. “A petition to the Tax Court, or a tax return, 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) (imposing
penalties on taxpayers who made frivolous constitutional
arguments in opposition to the income tax). Courts have ruled
that tax protester arguments and defenses to the filing
requirement, such as petitioner has apparently espoused, are
groundless and wholly without merit. Ginter v. Southern, supra
at 1229; see also Williams v. Commissioner, T.C. Memo. 1999-277;
Morin v. Commissioner, T.C. Memo. 1999-240; Sochia v.
Commissioner, T.C. Memo. 1998-294 (all of which imposed a section
6673 penalty for tax protester arguments).
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Last modified: May 25, 2011