Chay R. Stewart - Page 9

                                        - 9 -                                         
          6651(a)(1) because the record shows that petitioner was required            
          to file but has not filed a return for 2000 and 2001; and (2) to            
          make estimated tax payments under section 6654(a) because the               
          record shows that he did not make estimated tax payments with               
          respect to his tax liability for 2000 or 2001.                              
               Petitioner offers no defense to the additions to tax                   
          determined by respondent.  We conclude that he is liable for the            
          additions to tax for failure to file under section 6651(a)(1) of            
          $13,381 for 2000 and $20,364.50 for 2001 and for failure to pay             
          estimated tax under section 6654(a) of $2,858.96 for 2000 and               
          $3,255.36 for 2001.                                                         
          D.   Whether Petitioner Is Liable for a Penalty Under Section               
               6673                                                                   
               Respondent alleges for the first time on brief that                    
          petitioner is liable for a penalty under section 6673 because he            
          made only frivolous arguments.  Petitioner contends that he is              
          not liable for a penalty under section 6673 because (1) his                 
          arguments are supported by a reasoned argument for a change in              
          case authority, and (2) the majority of cases hold that the                 
          Commissioner cannot determine a deficiency for a year for which             
          the taxpayer did not file a return.                                         
               The Court may impose a penalty of up to $25,000 if the                 
          position or positions asserted by the taxpayer in the case are              
          frivolous or groundless or the proceedings were instituted                  
          primarily for delay.  Sec. 6673(a)(1)(B).  A position maintained            





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011