- 19 - other matters. Petitioner's conduct to date as summarized in this opinion demonstrates that petitioner's arguments challenging respondent's collection action with respect to petitioner's 1996-98 liabilities were frivolous and/or groundless. We shall require petitioner to pay to the United States a penalty under section 6673(a)(1) in the amount of $6,000. Our conclusion that it is appropriate to impose a section 6673 penalty on petitioner is the direct result of petitioner's arguments. We believe that our conclusion is warranted even though we have also held that the Appeals Office abused its discretion regarding petitioner's 2000 liability. Our holding regarding the 2000 liability is not the result of any argument that petitioner made. Rather, it stems from the rather obvious failure of respondent, as shown by the record, to present verification to the hearing officer that he issued a notice of deficiency for 2000 to petitioner before he assessed the 2000 deficiency. Our authority to impose a section 6673 penalty in this case arises from section 6673(a)(1) and is invoked by petitioner's frivolous and groundless arguments regarding his 1996-98 liabilities. There is nothing in section 6673(a)(1) to suggest that our authority to impose a section 6673 penalty is constrained in any way by the fact that petitioner was lucky enough to obtain a favorable ruling regarding respondent's proposed collection action with respect to the 2000 liability.Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 NextLast modified: November 10, 2007