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evidence has been presented that petitioner paid the estimated
tax for the subject years or that any of the exceptions to the
addition to tax under section 6654(e) are available.
Accordingly, we sustain respondent’s determinations.
D. Penalty Under Section 6673(a)
Respondent moved the Court, before trial, to impose a
$25,000 penalty under section 6673(a). Section 6673(a)(1)
authorizes the Court to require a taxpayer to pay to the United
States a penalty of up to $25,000 whenever it appears that
proceedings have been instituted or maintained by the taxpayer
primarily for delay or that the taxpayer’s position in such
proceeding is frivolous or groundless.
At the beginning of trial, the Court explained the motion to
petitioner and then asked if petitioner objected to the motion.
The following restates the Court’s explanation and how petitioner
replied:
THE COURT: Well, let me make sure you understand
what this motion is trying to accomplish. This motion
is a motion for sanctions pursuant to Section 6673
* * * .
That particular section of the Code permits this
Court, if it should find that you’re just bringing this
action for purposes of delay, or if it should find that
your arguments are frivolous, without merit, it can
fine you up to $25,000 for such activity * * * you
don’t object to that?
* * * * *
[Mr. Rodriguez]: No, I don’t object.
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