Joseph John Martella - Page 11

                                       - 11 -                                         
               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).                                  

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011