Charles E. Lewis - Page 8

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          C.   Penalty Under Section 6673(a)(1)                                       
               At trial, respondent asked the Court to impose a penalty on            
          petitioner under section 6673(a).  Section 6673(a)(1) authorizes            
          the Court to require a taxpayer to pay the United States a                  
          penalty in an amount not to exceed $25,000 whenever it appears to           
          the Court the taxpayer’s position is frivolous or groundless.               
          Sec. 6673(a)(1)(B).                                                         
               Petitioner has asserted tax-protester arguments throughout             
          these proceedings, and we have rejected these arguments as                  
          frivolous and without merit.  However, it does not appear that              
          petitioner has previously been a litigant in this Court, or that            
          he was warned before trial about the possibility of a penalty               
          under section 6673(a).  For this reason, we decline to impose a             
          penalty under section 6673(a).  However, we strongly admonish               
          petitioner that if he persists in failing to file his tax returns           
          and in pursuing tax-protester arguments, we may not be so                   
          favorably inclined in the future.                                           
               In reaching our holdings, we have considered all arguments             
          made, and, to the extent not mentioned, we conclude that they are           
          moot, irrelevant, or without merit.                                         
               To reflect the foregoing,                                              

                                                  Decision will be entered            
                                             for respondent.                          







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