- 9 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011