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the Tax Court, in its decision, may require the
taxpayer to pay to the United States a penalty not in
excess of $25,000.
(2) Counsel’s liability for excessive
costs.–-Whenever it appears to the Tax Court that
any attorney or other person admitted to practice
before the Tax Court has multiplied the
proceedings in any case unreasonably and
vexatiously, the Tax Court may require--
(A) that such attorney or other person
pay personally the excess costs, expenses,
and attorneys’ fees reasonably incurred
because of such conduct * * *
II. Section 6673(a)(1) Liability of Petitioners
A. Positions of the Parties
Respondent’s position is that we should impose a penalty
upon petitioners for advancing frivolous arguments and making
groundless claims and for instituting proceedings primarily for
delay. Respondent acknowledges petitioner Robert E. Gillespie’s
declaration that he was too ill to travel; nevertheless, argues
respondent, neither the declaration nor any other evidence
establishes any reasons why sanctions should not be imposed, and
there are no mitigating factors in the record. Respondent does
point out that Mr. Jones and Ms. Lacorte represented several
unrelated taxpayers in unrelated cases on the Las Vegas trial
calendar and, in those unrelated cases, Mr. Jones and Ms. Lacorte
made arguments similar to the frivolous arguments and groundless
claims advanced in these cases. Respondent states: “The conduct
of Mr. Jones and Ms. Lacorte in these other unrelated cases may
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Last modified: November 10, 2007