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raised frivolous tax protester arguments. Hence, the Court
concludes that respondent’s determination to proceed with
collection of petitioner’s tax liabilities was not an abuse of
discretion, and respondent may proceed with the proposed
collection.
II. Section 6673 Penalty
Section 6673(a)(1) authorizes the Tax Court to impose a
penalty not in excess of $25,000 on a taxpayer for proceedings
instituted primarily for delay or in which the taxpayer’s
position is frivolous or groundless. “A petition to the Tax
Court, or a tax return, is frivolous if it is contrary to
established law and unsupported by a reasoned, colorable argument
for change in the law.” Coleman v. Commissioner, 791 F.2d 68, 71
(7th Cir. 1986).
Respondent warned petitioner about the section 6673(a)(1)
penalty in the notice of determination, and the Court warned
petitioner at trial that he may be subject to such a penalty if
he continued to raise frivolous arguments. Although respondent
has not asked the Court to impose a penalty pursuant to section
6673(a)(1), the Court may sua sponte impose such a penalty
against a taxpayer. Pierson v. Commissioner, 115 T.C. 576, 580-
581 (2000). The Court is convinced that petitioner’s position is
frivolous and made for delay because it is based on tax-protester
rhetoric, which has been rejected by this Court and many others.
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Last modified: May 25, 2011