Robert Rodriguez - Page 9

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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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