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Section 6673(a)(1) authorizes the Court to require the
taxpayer to pay a penalty not in excess of $25,000 when it
appears to the Court that, inter alia, 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.3 In Pierson v. Commissioner, 115 T.C. 576, 581
(2000), we issued a warning to taxpayers concerning the
imposition of a penalty under section 6673(a)(1) on those
taxpayers abusing the protections afforded by sections 6320 and
6330 through the bringing of dilatory or frivolous lien or levy
actions. The Court has since repeatedly disposed of cases
premised on arguments akin to those raised herein summarily and
with imposition of the section 6673 penalty. See, e.g., Craig v.
Commissioner, 119 T.C. 252, 264-265 (2002) (and cases cited
therein).
Respondent has not sought a section 6673 penalty in this
case, and the Court declines to impose such a penalty because the
record contains no evidence that petitioner has been warned
expressly that we may do so under the circumstances extant
herein. However, petitioner is now so warned. If petitioner
insists on asserting frivolous and irrelevant arguments in the
3Respondent did not move for a penalty under sec.
6673(a)(1). However, the Court considers this issue sua sponte.
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Last modified: May 25, 2011