- 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