- 4 - II. Section 6673 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 the taxpayer took frivolous or groundless positions in the proceedings or instituted the proceedings primarily for delay. A position maintained by the taxpayer is “frivolous” where it is “contrary to established law and unsupported by a reasoned, colorable argument for change in the law.” Coleman v. Commissioner, 791 F.2d 68, 71 (7th Cir. 1986); see also Hansen v. Commissioner, 820 F.2d 1464, 1470 (9th Cir. 1987) (section 6673 penalty upheld because taxpayer should have known claim was frivolous). Respondent repeatedly warned petitioner that his arguments are frivolous. Respondent provided petitioner with a copy of “The Truth About Frivolous Tax Arguments”. Respondent directed petitioner to, among other things, sections 61 and 72. Additionally, petitioner is no stranger to this Court. In docket No. 16886-04, petitioner also argued that distributions from the Defense Finance and Accounting Service and from the TRW pension plan for 2000 were not taxable. On December 14, 2005, we granted summary judgment for respondent in docket No. 16886-04 and entered an order and decision holding, among other things, that the distributions from the Defense Finance and AccountingPage: Previous 1 2 3 4 5 6 NextLast modified: November 10, 2007