- 12 - 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 pursuingPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
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