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Petitioner did not act in good faith. Petitioner relied on
frivolous tax-protester arguments in deciding not to file an
adequate return. Petitioner’s reliance on these materials does
not constitute reasonable cause for failing to file a return.
See Coulton v. Commissioner, T.C. Memo. 2005-199. Accordingly,
we sustain respondent’s determination.
IV. Penalty
Section 6673(a)(1) authorizes this Court to require a
taxpayer to pay to the United States a penalty not to exceed
$25,000 if the taxpayer took frivolous positions in the
proceeding or instituted the proceedings primarily for delay. A
position maintained by the taxpayer is “frivolous” where 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). The U.S. Court of
Appeals for the Tenth Circuit, the court which is the likely
venue for appeal of this case, has upheld sanctions against
taxpayers making arguments similar to petitioner’s. See Casper
v. Commissioner, supra at 905; Charczuk v. Commissioner, supra at
475.
Petitioner’s protester rhetoric is manifestly frivolous and
groundless. He has caused this Court to waste limited resources
by his persistence in advancing views of the tax law which are
known to be completely without merit. Petitioner was duly warned
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