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in the notice of determination with respect to petitioner’s
taxable years 1992, 1993, and 1994.
Although respondent does not ask the Court to impose a
penalty on petitioner under section 6673(a)(1), we now consider
sua sponte whether the Court should impose a penalty on peti-
tioner under that section. Section 6673(a)(1) authorizes the
Court to require a taxpayer to pay a penalty to the United States
in an amount not to exceed $25,000 whenever it appears that a
taxpayer instituted or maintained a proceeding in the Court
primarily for delay or that a taxpayer’s position in such a
proceeding is frivolous or groundless.
In the Court’s March 2, 2006 Order, the Court, inter alia,
indicated that petitioner’s pleadings contained statements,
contentions, and arguments that the Court found to be frivolous
and groundless. In that Order, the Court reminded petitioner
about section 6673(a)(1) and admonished him that, in the event he
continued to advance frivolous and/or groundless statements,
contentions, and arguments, the Court would be inclined to impose
a penalty not in excess of $25,000 on him under section
6673(a)(1).10 Despite the admonitions in that Order, on March
17, 2006, the Court received from petitioner and had filed as of
10Before petitioner commenced the instant proceedings,
respondent informed petitioner in the attachment to the notice of
determination that in Pierson v. Commissioner, 115 T.C. 576
(2000), “the taxpayer argued that he had no income subject to tax
* * *. The Tax Court found this position groundless.”
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Last modified: May 25, 2011