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with its treatment of the workers as employees. Consequently,
petitioner fails to satisfy all of the act section 530
requirements. Petitioner is not entitled to relief under act
section 530.15
IV. Section 6673 Penalty
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. Although
respondent has not asked the Court to impose a penalty under
section 6673(a)(1), the Court may sua sponte impose such a
penalty against a taxpayer. See Pierson v. Commissioner, 115
T.C. 576, 580-581 (2000).
In its opening brief, petitioner argued that Forms 940,
941, and W-2 and Form W-4, Employee’s Withholding Allowance
Certificate, are invalid because they lack an Office of
Management and Budget (OMB) number. Petitioner also listed
15Petitioner argues that respondent failed to provide notice
of act sec. 530 to it as required by act sec. 530(e)(1). Because
in any event petitioner did not satisfy the act sec. 530
requirements before the examination, it was not prejudiced by any
lack of notice. See Nu-Look Design, Inc. v. Commissioner, 356
F.3d 290, 295 (3d Cir. 2004), affg. T.C. Memo. 2003-52.
Moreover, petitioner was informed of act sec. 530 in the notice
of determination of worker classification. See id. (relief under
due process clause not warranted where notice of determination of
worker classification advised taxpayer of safe harbor provisions
of act sec. 530 and procedure for challenging determination).
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