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119 T.C. 285, 295 (2002). “A taxpayer’s position is frivolous if
it is contrary to established law and unsupported by a reasoned,
colorable argument for [a] change in the law.” Id. at 287. “The
inquiry is objective. If a person should have known that his
position is groundless, a court may and should impose sanctions.”
Id.
Petitioner’s arguments that (1) he is not taxable on wages
and/or other compensation, and (2) the notices of deficiency for
all of the years in issue are invalid, are shopworn, frivolous,
tax-protester arguments that are contrary to settled principles
of law. That petitioner made the former argument without
analysis or serious thought as to its merit is indicated by the
inclusion of the argument in attachments to his returns and in
his petitions for 2001 and 2002, years in which petitioner
received no wages or other compensation for services performed
during those years. In addition, respondent’s counsel mailed a
letter dated May 5, 2005, to petitioner advising him that he was
advancing frivolous arguments and encouraging him “to consult
with a reputable tax practitioner before making such arguments in
Court.” Respondent’s counsel attached to his letter excerpts
from an IRS publication entitled “The Truth About Frivolous Tax
Arguments”, which addresses all of petitioner’s aforementioned
arguments and demonstrates that they are contrary to established
law. Under the circumstances, we shall grant respondent’s motion
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Last modified: November 10, 2007