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petitioner had a required annual payment for 2003 payable in
installments under section 6654; analysis by the Court under
section 6654(d)(1)(B)(ii) does not apply. See id. Respondent
has met his burden of production under section 7491(c) with
respect to the section 6654 addition to tax, and we sustain
respondent’s determination.
6. Section 6673(a)(1) Penalty
Respondent moves the Court to impose a penalty on petitioner
under section 6673. Section 6673(a)(1) authorizes this Court to
require a taxpayer to pay to the United States a penalty not in
excess of $25,000 whenever it appears that proceedings have been
instituted or maintained by the taxpayer primarily for delay or
that the taxpayer's position in such proceeding is frivolous or
groundless. A taxpayer’s position is frivolous or groundless if
it is “‘contrary to established law and unsupported by a
reasoned, colorable argument for change in the law.’” Williams
v. Commissioner, 114 T.C. 136, 144 (2000) (quoting Coleman v.
Commissioner, 791 F.2d 68, 71 (7th Cir. 1986)). We find that
petitioner has advanced frivolous and groundless statements,
contentions, and arguments. We further find that petitioner has
instituted this proceeding primarily for delay. Under the
circumstances presented, we shall impose on petitioner a penalty
in the amount of $2,000.
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