M. Kenneth Creamer - Page 10

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          imposed the penalty on taxpayers who have raised frivolous and              
          groundless arguments with respect to the legality of the Federal            
          tax laws.  See, e.g., Roberts v. Commissioner, 118 T.C. 365, 372-           
          373 (2002), affd. 329 F.3d 1224 (11th Cir. 2003); Call v.                   
          Commissioner, T.C. Memo. 2005-289, affd. without published                  
          opinion 99 AFTR 2d 2007-2526, 2007-1 USTC par. 50,492 (9th Cir.             
               The record clearly establishes that the only arguments made            
          by petitioner during the section 6330 proceeding and before this            
          Court were frivolous and/or groundless.  Respondent warned                  
          petitioner of the section 6673 penalty for instituting or                   
          maintaining proceedings primarily for delay or for taking                   
          positions that are frivolous and/or groundless.  Despite                    
          respondent’s warning, petitioner continued to assert frivolous              
          and groundless arguments during the section 6330 proceeding and             
          before this Court.  Petitioner’s conduct deserves appropriate               
          sanction.  Accordingly, we shall require petitioner to pay to the           
          United States a penalty under section 6673(a)(1) of $2,000.9                

               9Petitioner was criminally prosecuted and was convicted of             
          tax evasion in the U.S. District Court for the Northern District            
          of New York.  Petitioner was sentenced to 5 years in jail, fined            
          $10,000, and ordered to pay all back taxes.                                 

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