Laura K. Davis, et al. - Page 25

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          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,                    

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