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(B) the taxpayer’s position in such
proceeding is frivolous or groundless, or
(C) the taxpayer unreasonably failed to
pursue available administrative remedies,
the Tax Court, in its decision, may require the
taxpayer to pay to the United States a penalty not in
excess of $25,000.
The record demonstrates that petitioners’ contentions are
frivolous and groundless, and we are convinced that petitioners
instituted and maintained the instant proceeding primarily, if
not exclusively, for purposes of delay.9 Petitioners were
provided with a copy of Pierson v. Commissioner, 115 T.C. at 581,
in which we stated:
we regard this case as fair warning to those taxpayers who,
in the future, institute or maintain a lien or levy action
primarily for delay or whose position in such a proceeding
is frivolous or groundless. See White v. Commissioner, 72
T.C. 1126, 1135-1136 (1979) (providing fair warning to
taxpayers in deficiency actions who bring frivolous case
merely for purposes of delay).
Consequently, pursuant to section 6673(a)(1), we shall require
petitioners to pay to the United States a penalty of $15,000.
To reflect the foregoing,
An appropriate order and
decision for respondent will
be entered.
9Petitioners have made the same frivolous and groundless
contentions in a separate proceeding before this Court, docket
No. 13514-03L, with respect to their 1996 tax year.
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Last modified: May 25, 2011