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the additions to tax pursuant to section 6654(a) for 2000 and
2001.
III. Section 6673(a)(1)
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 positions in the
proceeding 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). In Parker v.
Commissioner, 724 F.2d 469, 472 (5th Cir. 1984), affg. T.C. Memo.
1983-75, the U.S. Court of Appeals for the Fifth Circuit, the
court which is the likely venue for appeal, gave a “cautionary
note to those who would persistently raise arguments against the
income tax which have been put to rest for years. The full range
of sanctions in Rule 38 hereafter shall be summoned in response
to a totally frivolous appeal.”
Prior to trial, petitioner filed several documents
containing frivolous and groundless arguments with the Court.
The Court specifically warned petitioner that we may penalize
petitioner up to $25,000 pursuant to section 6673 for pursuing
arguments that the Court advised him had been rejected as
frivolous by the Court, the U.S. Court of Appeals for the Fifth
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