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taxable income; (2) payment of Federal income tax is not
voluntary; (3) respondent’s settlement officer verified that the
requirements of applicable law and administrative procedures had
been met; (4) the certified transcripts of petitioner’s tax
account for 1994-99 show that assessment was proper and the lien
was not premature; and (5) there is no evidence that the
conclusions of the settlement officer are incorrect or that any
sanctions against IRS personnel are warranted.
We conclude that respondent’s determination not to withdraw
the notice of Federal tax lien was not an abuse of discretion.
C. Whether Petitioner Is Liable for a Penalty Under Section
6673
Respondent moved at trial to impose a penalty under section
6673 on grounds that petitioner made only frivolous arguments and
instituted these proceedings primarily for delay. Petitioner
responded to respondent’s motion with frivolous arguments.
The Court may impose a penalty of up to $25,000 if the
taxpayer’s position or positions are frivolous or groundless or
the proceedings were instituted primarily for delay. Sec.
6673(a)(1)(B). A taxpayer’s position is frivolous or groundless
if it is contrary to established law and unsupported 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.
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