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these arguments possess some degree of colorable merit. See
Crain v. Commissioner, 737 F.2d 1417, 1417 (5th Cir. 1984).
Petitioner had the opportunity to challenge the correctness of
his tax liability for 1998 but instead chose not to do so.
Therefore petitioner’s underlying tax liability for 1998 was not
properly in issue. Accordingly, we hold that no genuine issue of
material fact exists requiring trial and that respondent is
entitled to summary judgment. Respondent’s determination to
proceed with the proposed levy to collect petitioner’s tax
liability for 1998 was not an abuse of discretion.
Section 6673(a)(1) provides that this Court may require the
taxpayer to pay a penalty not in excess of $25,000 whenever it
appears to this Court: (a) The proceedings were instituted or
maintained by the taxpayer primarily for delay; (b) the
taxpayer’s position is frivolous or groundless; (c) or the
taxpayer unreasonably failed to pursue available administrative
remedies. Respondent has moved that the Court impose a penalty
in the instant case. The record indicates that petitioner
received several warnings that this Court could impose a penalty
if he persisted in raising his frivolous tax protester arguments.
Despite being warned, petitioner raised his frivolous arguments
throughout the section 6330 administrative process, in his
petition to this Court, and in his response to respondent’s
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Last modified: May 25, 2011