Aaron T. and Linda K. Ball - Page 8

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               Petitioners have failed to raise a spousal defense, make a             
          valid challenge to the appropriateness of respondent’s intended             
          collection action, or offer alternative means of collection.                
          These issues are now deemed conceded.  See Rule 331(b)(4).                  
          Accordingly, we sustain respondent’s determination to proceed               
          with collection.                                                            
          II.  Section 6673 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 proceedings             
          or instituted the proceedings primarily for delay.  In Pierson v.           
          Commissioner, 115 T.C. 576, 581 (2000), we issued an unequivocal            
          warning to taxpayers concerning the imposition of a penalty                 
          pursuant to section 6673(a) on those taxpayers who abuse the                
          protections afforded by sections 6320 and 6330 by instituting or            
          maintaining actions under those sections primarily for delay or             
          by taking frivolous and/or groundless positions in such actions.            
          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); see also Hansen v.           
          Commissioner, 820 F.2d 1464, 1470 (9th Cir. 1987) (section 6673             

          levy.  Petitioners, however, continued to make only frivolous               
          and/or groundless tax-protester arguments.                                  

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