John H. Webster - Page 6

                                        - 6 -                                         
               Form 4340, Certificate of Assessments, Payments, and Other             
          Specified Matters; Form 1099-MISC; and the stipulation of facts             
          establish that petitioner failed to pay any estimated tax for               
          1998.                                                                       
               Petitioner does not qualify for any of the exceptions listed           
          in section 6654(e).  Accordingly, we hold that petitioner is                
          liable for the addition to tax pursuant to section 6654(a).                 
               C.  Section 6673                                                       
               Under section 6673, this Court may require a taxpayer to pay           
          a penalty not to exceed $25,000 if the taxpayer takes a frivolous           
          position in the proceeding or institutes the proceeding primarily           
          for delay.  A position maintained by the taxpayer is “frivolous”            
          where 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).                              
               Petitioner’s protester rhetoric is manifestly frivolous and            
          groundless.  He has wasted the time and resources of this Court             
          on more than one occasion.3  Petitioner’s insistence on making              
          protester type arguments after he was warned both in the current            
          proceedings and in prior proceedings before this Court indicates            


               3  Petitioner was before this Court regarding his 1997 tax             
          year, advancing similar protester arguments.  Webster v.                    
          Commissioner, T.C. Summary Opinion 2002-43.  We sustained                   
          respondent’s determination and warned petitioner that the                   
          imposition of a sec. 6673 penalty was likely if petitioner                  
          returned to this Court advancing similar arguments.  Id.                    





Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011