George E. Harp - Page 10




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          section 6673(a)(1).  However, the Court may sua sponte determine            
          whether to impose such a penalty.                                           
               We find that petitioner instituted and maintained this case            
          primarily for delay.  During the examination prior to the                   
          issuance of the notice of deficiency, the section 6330 hearing,             
          and the trial of this case, petitioner raised no arguments of               
          merit.  Instead, he advanced only frivolous and groundless                  
          arguments.  In the notice of determination, respondent warned               
          petitioner of the possibility of a penalty under section                    
          6673(a)(1).  Additionally, petitioner is an attorney who is                 
          admitted to practice before this Court and has represented at               
          least two taxpayers before the Court.  See Olmos v. Commissioner,           
          T.C. Memo. 2007-82; Heers v. Commissioner, T.C. Memo. 2007-10.              
          Under the circumstances, it is reasonable to assume that                    
          petitioner understood the potential consequences of maintaining             
          an action primarily for delay and of raising frivolous and                  
          groundless arguments.  On the basis of the above, we shall impose           
          a penalty on petitioner pursuant to section 6673(a)(1) in the               
          amount of $5,000.                                                           
               We have considered all arguments made, and, to the extent              
          not mentioned, we conclude that they are moot, irrelevant, or               
          without merit.                                                              










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