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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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Last modified: May 25, 2011