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III. 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 it appears that the taxpayer has instituted or
maintained a proceeding primarily for delay or that the
taxpayer’s position is frivolous or groundless. Section
6673(a)(1) applies to proceedings under section 6330. Pierson v.
Commissioner, 115 T.C. 576, 581 (2000). In proceedings under
section 6330, we have imposed the penalty on taxpayers who have
raised frivolous and groundless arguments with respect to the
legality of the Federal tax laws. See, e.g., Roberts v.
Commissioner, 118 T.C. 365, 372-373 (2002), affd. 329 F.3d 1224
(11th Cir. 2003); Eiselstein v. Commissioner, T.C. Memo. 2003-22;
Yacksyzn v. Commissioner, T.C. Memo. 2002-99.
In this case, the record clearly establishes that the only
arguments made by petitioner during the administrative processing
of this case were frivolous and/or groundless. Petitioner’s
conduct as summarized in this opinion demonstrates that the
section 6330 proceeding was instituted primarily for delay and as
a means to challenge the legitimacy of the Federal income tax
system. His conduct merits a substantial penalty.
In setting the amount of the penalty, we consider
petitioner’s conduct in this case, his extended history of
noncompliance with Federal tax law, his history of pursuing
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