- 25 -
taxpayers to think and to conform their conduct to settled
principles before they file returns and litigate. Takaba v.
Commissioner, 119 T.C. 285, 295 (2002).
Not only do we determine that Mr. Davis is deserving of a
penalty for conduct that violates section 6673(a)(1)(A) and (B),
but we believe that he is deserving of a penalty pursuant to
section 6673(a)(1)(C) for unreasonably failing to pursue
available administrative remedies. As summarized in our
background discussion under the heading Determinations, Mr. Davis
neither requested release nor withdrawal of the NFTL, nor did he
show that he was entitled to release or withdrawal of it. Nor
did he respond to the settlement officer’s request for collection
alternatives. Assuming that he had a case to make to the
settlement officer, Mr. Davis did not act reasonably in
presenting less than his full case to him during the
administrative process.
C. Conclusion
Taking into account respondent’s position, we shall
discharge our orders to show cause in docket Nos. 144-05L and
149-05L, involving Ms. Davis, and 145-05L, involving the trustee,
as to why a penalty should not be imposed on the petitioner
pursuant to section 6673(a)(1), and we shall make absolute our
orders to show cause in docket Nos. 146-05L and 147-05L,
Page: Previous 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Next
Last modified: November 10, 2007