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II. Section 6673(a)(1) Liability of Petitioners
A. Positions of the Parties
Respondent’s position is that we should impose a penalty
against Mr. Davis in docket Nos. 146-05L (concerning Mr. Davis’s
1997 and 1998 taxable years) and 147-05L (concerning his 1999
taxable year) for advancing frivolous arguments and making
groundless claims and for instituting proceedings primarily for
delay. Respondent points out that Mr. Davis’s 1997 and 1998
taxable years were previously before the Court in a deficiency
case in which we sustained the deficiencies in full and imposed a
penalty of $25,000 upon him under section 6673(a)(1) for
instituting the case for purposes of delay and for making
frivolous arguments. Respondent argues that, despite the
imposition of one section 6673(a)(1) penalty against him, Mr.
Davis has continued to institute proceedings in this Court for
delay and to advance frivolous and groundless arguments therein.
Respondent adds, however, that, at the Las Vegas trial session,
Mr. Davis testified to certain facts that, if true, might
mitigate the penalty the Court saw fit to impose on him; e.g.,
his reliance on counsel. Nevertheless, respondent believes that,
given his history of advancing frivolous or groundless arguments,
the Court should impose some penalty upon him.
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Last modified: November 10, 2007