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abused its discretion in sustaining respondent’s levy action with
respect to the 2000 liability.
II. Section 6673(a)
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. See
Pierson v. Commissioner, 115 T.C. 576, 581 (2000). In
proceedings under section 6330, we have imposed the penalty on
taxpayers who raised frivolous and groundless arguments with
respect to the legality of the Federal tax laws. See, e.g.,
Roberts v. Commissioner, 118 T.C. at 372-373; Eiselstein v.
Commissioner, T.C. Memo. 2003-22; Yacksyzn v. Commissioner, T.C.
Memo. 2002-99.
In a motion for summary judgment and to impose a penalty
under section 6673, respondent warned petitioner that his
unfounded allegations constituted a frivolous appeal subject to
monetary sanctions under section 6673(a)(1). Although we denied
the motion before trial because we were not convinced that
summary judgment was appropriate, petitioner continued at trial
to assert meritless arguments regarding the validity of the
1996-98 notice of deficiency, his obligation to pay taxes, and
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