- 10 -
by the taxpayer is frivolous if it is contrary to established law
and is not supported by a reasoned, colorable argument for change
in the law. Coleman v. Commissioner, 791 F.2d 68, 71 (7th Cir.
1986); Gilligan v. Commissioner, T.C. Memo. 2004-194.
Petitioner’s contention that the Commissioner cannot
determine a deficiency for a year for which a taxpayer did not
file a return is frivolous. Scruggs v. Commissioner, T.C. Memo.
1995-355, affd. without published opinion 117 F.3d 1433 (11th
Cir. 1997); Zyglis v. Commissioner, T.C. Memo. 1993-341, affd.
without published opinion 29 F.3d 620 (2d Cir. 1994).
However, not all of petitioner’s arguments are frivolous.
For example, petitioner contended in his pretrial memorandum that
respondent is required to reduce petitioner’s gross receipts by
the average business expense for the insurance industry.
Petitioner pointed out that in Brenner v. Commissioner, T.C.
Memo. 2004-202, the Commissioner allowed as a business expense
deduction 54.77 percent of the gross receipts of a nonfiling
taxpayer from Ormond Beach, Florida, who sold insurance and
financial products.
We do not impose a penalty under section 6673 because not
all of petitioner’s arguments are frivolous. However, we warn
petitioner that the Court may impose this penalty in the future
if he makes frivolous arguments or institutes proceedings
primarily for delay.
To reflect the foregoing,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011